2. 0 Quantity 1 2 Polly's Piñatas has a local monopoly in the sale of piñatas. The table below shows the demand for piñatas at various prices. The total cost of production of the various levels of output is also shown. Calculate marginal revenue and marginal cost for the firm. What level of output maximizes profit? What price should the firm charge? 3 4 5 Quantity 0 1 2 3 4 5 Price $15 13 11 9 7 5 Price $15 13 11 9 7 5 Total Revenue Quantity 0 1 2 3 4 LO 5 Total Cost $10 13 17 22 28 35 Marginal Total Revenue Cost $10 13 17 22 28 35 Marginal Cost

2. 0 Quantity 1 2 Polly's Piñatas has a local monopoly in the sale of piñatas. The table below shows the demand for piñatas at various prices. The total cost of production of the various levels of output is also shown. Calculate marginal revenue and marginal cost for the firm. What level of output maximizes profit? What price should the firm charge? 3 4 5 Quantity 0 1 2 3 4 5 Price $15 13 11 9 7 5 Price $15 13 11 9 7 5 Total Revenue Quantity 0 1 2 3 4 LO 5 Total Cost $10 13 17 22 28 35 Marginal Total Revenue Cost $10 13 17 22 28 35 Marginal Cost

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter13: Monopoly And Antitrust

Section: Chapter Questions

Problem 5P

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How can a monopolist identify the profit-maximizing level of output if it knows its total revenue and total cost curves?
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