Consider the following table with a monopolist's cost and revenue data and answer the questions below, and answer these three questions:A) Determine the profit-maximizing (or loss-minimizing) quantity and price for the above monopolist.B) Calculate the profit (or loss) for the profit-maximizing quantity.C) Calculate the average profit (or loss) for the profit-maximizing quantity. Show/explain all of your work. Quantity Produced Price Total Revenue Total Cost Marginal Cost 0 16 0 60 - 5 15 75 120 12 10 14 140 170 10 15 13 195 215 9 20 12 240 250 7 25 11 275 280 6 30 10 300 310 6 35 9 315 360 10 40 8 320 430 14 45 7 315 530 20
Consider the following table with a monopolist's cost and revenue data and answer the questions below, and answer these three questions:A) Determine the profit-maximizing (or loss-minimizing) quantity and price for the above monopolist.B) Calculate the profit (or loss) for the profit-maximizing quantity.C) Calculate the average profit (or loss) for the profit-maximizing quantity. Show/explain all of your work. Quantity Produced Price Total Revenue Total Cost Marginal Cost 0 16 0 60 - 5 15 75 120 12 10 14 140 170 10 15 13 195 215 9 20 12 240 250 7 25 11 275 280 6 30 10 300 310 6 35 9 315 360 10 40 8 320 430 14 45 7 315 530 20
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Consider the following table with a monopolist's cost and revenue data and answer the questions below, and answer these three questions:
A) Determine the profit-maximizing (or loss-minimizing) quantity and
B) Calculate the profit (or loss) for the profit-maximizing quantity.
C) Calculate the average profit (or loss) for the profit-maximizing quantity.
Show/explain all of your work.
|
Quantity Produced |
Price |
Total Revenue |
Total Cost |
Marginal Cost |
|
0 |
16 |
0 |
60 |
- |
|
5 |
15 |
75 |
120 |
12 |
|
10 |
14 |
140 |
170 |
10 |
|
15 |
13 |
195 |
215 |
9 |
|
20 |
12 |
240 |
250 |
7 |
|
25 |
11 |
275 |
280 |
6 |
|
30 |
10 |
300 |
310 |
6 |
|
35 |
9 |
315 |
360 |
10 |
|
40 |
8 |
320 |
430 |
14 |
|
45 |
7 |
315 |
530 |
20 |
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