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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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