oly on the production of baseballs (don't ask how) and faces mand and cost situation shown in the following table. Quantity Total Marginal Total Margina (per Revenue Revenue Cost Cost week) 15,000 $330,000 20,000 365,000 25,000 405,000 30,000 450,000 35,000 500,000

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Can you answer D for me please?

## Monopoly Production and Cost Analysis

### Overview

Ed Scahill has acquired a monopoly on the production of baseballs. The table below shows the demand and cost situation he faces.

### Table Explanation

The table displays the following columns:

1. **Price**: The price per unit of baseballs.
2. **Quantity (per week)**: The quantity of baseballs produced and sold per week.
3. **Total Revenue**: The total revenue generated by selling the specified quantity.
4. **Marginal Revenue**: The additional revenue generated by selling one more unit of baseballs.
5. **Total Cost**: The total cost incurred for producing the specified quantity.
6. **Marginal Cost**: The additional cost incurred by producing one more unit of baseballs.

#### Table Data

| Price | Quantity (per week) | Total Revenue | Marginal Revenue | Total Cost | Marginal Cost |
|-------|---------------------|---------------|------------------|------------|---------------|
| $20   | 15,000              |               |                  | $330,000   |               |
| 19    | 20,000              |               |                  | 365,000    |               |
| 18    | 25,000              |               |                  | 405,000    |               |
| 17    | 30,000              |               |                  | 450,000    |               |
| 16    | 35,000              |               |                  | 500,000    |               |
| 15    | 40,000              |               |                  | 555,000    |               |

### Task

a. Fill in the remaining values in the table.

This exercise demonstrates how changes in price and quantity affect total and marginal revenue as well as total and marginal costs in a monopoly setting.
Transcribed Image Text:## Monopoly Production and Cost Analysis ### Overview Ed Scahill has acquired a monopoly on the production of baseballs. The table below shows the demand and cost situation he faces. ### Table Explanation The table displays the following columns: 1. **Price**: The price per unit of baseballs. 2. **Quantity (per week)**: The quantity of baseballs produced and sold per week. 3. **Total Revenue**: The total revenue generated by selling the specified quantity. 4. **Marginal Revenue**: The additional revenue generated by selling one more unit of baseballs. 5. **Total Cost**: The total cost incurred for producing the specified quantity. 6. **Marginal Cost**: The additional cost incurred by producing one more unit of baseballs. #### Table Data | Price | Quantity (per week) | Total Revenue | Marginal Revenue | Total Cost | Marginal Cost | |-------|---------------------|---------------|------------------|------------|---------------| | $20 | 15,000 | | | $330,000 | | | 19 | 20,000 | | | 365,000 | | | 18 | 25,000 | | | 405,000 | | | 17 | 30,000 | | | 450,000 | | | 16 | 35,000 | | | 500,000 | | | 15 | 40,000 | | | 555,000 | | ### Task a. Fill in the remaining values in the table. This exercise demonstrates how changes in price and quantity affect total and marginal revenue as well as total and marginal costs in a monopoly setting.
Suppose that the government raises the tax in part (c) to $70,000. Now what price should Ed charge, how many baseballs should he sell, and what will his profit (or loss) be? Will his decision on what price to charge and how much to produce be different in the short run than in the long run? Briefly explain.
Transcribed Image Text:Suppose that the government raises the tax in part (c) to $70,000. Now what price should Ed charge, how many baseballs should he sell, and what will his profit (or loss) be? Will his decision on what price to charge and how much to produce be different in the short run than in the long run? Briefly explain.
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