B) The table below shows the information on quantity, price and cost of a monopolist. Assume that the fixed costis $20,QuantityPriceTotal Variable Cost10$9$20208$6030$7$12040S6$20050$5$30060$4$420Determine the optimal output of the firm and compute the profit or loss of the firm at the optimal output. At whatprice will the monopolist exit from the industry?

Given information Fixed cost=20 Monopolistic firm maximize profit.

Answered: B) The table below shows the…

B) The table below shows the information on quantity, price and cost of a monopolist. Assume that the fixed cos is $20, Quantity Price Total Variable Cost 10 $9 $20 20 $8 $60 30 $7 $120

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter9: Monopoly

Section: Chapter Questions

Problem 7SQP

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Question

B) The table below shows the information on quantity, price and cost of a monopolist. Assume that the fixed cost
is $20,
Quantity
Price
Total Variable Cost
10
$9
$20
20
8
$60
30
$7
$120
40
S6
$200
50
$5
$300
60
$4
$420
Determine the optimal output of the firm and compute the profit or loss of the firm at the optimal output. At what
price will the monopolist exit from the industry?

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