Ignore AFC and AVC 2. Suppose a pure monopolist faces the following demand schedule and the same cost data as the competitive producer discussed in problem 4 at the end of Chapter 10. Calculate the missing TR and MR amounts, and determine the profit-maximizing price and profit-maximizing output for this monopolist. What is the monopolist's profit? Verify your answer graphically and by comparing total revenue and total cost. LO11.4 Average Total Average Variable Average Marginal Product Fixed Cost Cost Total Cost Cost 0 $45 1 $60.00 $45.00 $105.00 40 2 30.00 42.50 72.50 3 20.00 40.00 60.00 4 15.00 37.50 52.50 5 12.00 37.00 49.00 6 10.00 37.50 47.50 45 7 8.57 38.57 47.14 00 8 7.50 40.63 48.13 10 96 6.67 43.33 50.00 GGG u w u 35 30 35 40 55 65 75 6.00 46.50 52.50 Price Quantity Demanded Total Revenue Marginal Revenue $115 0 100 1 83 2 3 63 55 48 42 52 233 2 37 4 5 6 7 8 9 10 $ $

Ignore AFC and AVC 2. Suppose a pure monopolist faces the following demand schedule and the same cost data as the competitive producer discussed in problem 4 at the end of Chapter 10. Calculate the missing TR and MR amounts, and determine the profit-maximizing price and profit-maximizing output for this monopolist. What is the monopolist's profit? Verify your answer graphically and by comparing total revenue and total cost. LO11.4 Average Total Average Variable Average Marginal Product Fixed Cost Cost Total Cost Cost 0 $45 1 $60.00 $45.00 $105.00 40 2 30.00 42.50 72.50 3 20.00 40.00 60.00 4 15.00 37.50 52.50 5 12.00 37.00 49.00 6 10.00 37.50 47.50 45 7 8.57 38.57 47.14 00 8 7.50 40.63 48.13 10 96 6.67 43.33 50.00 GGG u w u 35 30 35 40 55 65 75 6.00 46.50 52.50 Price Quantity Demanded Total Revenue Marginal Revenue $115 0 100 1 83 2 3 63 55 48 42 52 233 2 37 4 5 6 7 8 9 10 $ $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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