Exhibit 25-8 Quantity 2 3 4 5 6 7 O $5 $10 O $40 Total Revenue O $20 $200 270 320 350 360 350 Total Cost $180 195 205 Refer to Exhibit 25-8. The marginal cost of the last unit produced at the profit-maximizing output level equals 210 220 250

11. Refer to the table below Output Total Variable Cost Total Cost 012345678 $0 $100 $100. $200 $140 $240 $190 $290 $250 $350 $320 $420 $400 $500 $490 $590 $590 $690 Suppose the firm has maximized profit based on the market price at the output of 8 units. What is the marginal revenue earned from the eighth unit? A) $100 B) $90 C) $590 D) $110 E) $690

As per given information, the table is completed:- (In $) Quantity Price Total Marginal Total Cost Marginal Revenue Revenue Cost 34 20 20 1 32 32 32 36 16 2 30 60 28 46 10 28 84 24 50 4 4 26 104 20 54 4 24 120 16 56 2 22 132 12 64 7 20 140 80 16 8 18 144 4 100 20 16 144 128 28 14 140 -4 160 32 (d) Generally, what are the relative values of price, ATC, and AVC when a monopolist experiences: a profit? a loss but continues to produce? a loss but ceases production? 10

Dollars per unit $15 $14 $13 $12 $11 $10 $9 58 $7 $6 $5 $4 $3 $1 $15 O $5 O $3 O $10 500 750 MC Referring to the graph above, the profit-maximizing price is AVC 1,000 1,250 -MR=D ATC Quantity