The demand schedule of Karachi electric (KE) (known as monopolist) is given as below. You need to find the missing values using TR-TC & MR-MC approaches to analyze its cost of production and profit maximizing point. Output Price Total Cost Total Revenue MC MR Rs.24 Rs.10 1 21 14 18 20 15 28 4 12 38 9 50 a. Find the missing values of Total Revenue column b. Find the output level that maximizes the firm's profit, using TR-TC approach c. What price should the firm set to achieve maximum profit? d. Complete the final two columns to verify that the same conclusions are reached using the MR = MC rule. e. Compare both the results and comment on the business and its position.

The demand schedule of Karachi electric (KE) (known as monopolist) is given as below. You need to find the missing values using TR-TC & MR-MC approaches to analyze its cost of production and profit maximizing point. Output Price Total Cost Total Revenue MC MR Rs.24 Rs.10 1 21 14 18 20 15 28 4 12 38 9 50 a. Find the missing values of Total Revenue column b. Find the output level that maximizes the firm's profit, using TR-TC approach c. What price should the firm set to achieve maximum profit? d. Complete the final two columns to verify that the same conclusions are reached using the MR = MC rule. e. Compare both the results and comment on the business and its position.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Monopoly

Section: Chapter Questions

Problem 1PA

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