11. Problems and Applications Q3Johnny Rockabilly has just finished recording his latest CD. The company can produce the CD with no fixed cost and a variable cost of $18 per CD. Hisrecord company's marketing department determines that the demand for the CD is as follows:Complete the following table by computing total revenue for each quantity listed and marginal revenue for each 5,000 increase in the quantity sold.PriceTotal RevenueMarginal Revenue(Dollars) Number of CDs(Dollars)(Dollars)3010,0002815,0002620,0002425,0002230,0002035,000Profit is maximized at a quantity ofCDs and a price ofThis results in a profit ofIf you were Johnny's agent, you would advise Johnny to demand a recording fee offrom the record company.

Below formulas are used to complete the table

Answered: 11. Problems and Applications Q3 Johnny…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Monopoly

Section: Chapter Questions

Problem 10PA

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Q48' Assume that Cresco Labs is a monopolist that can sell 15 ounces of marijuana per day at $12.50 for each ounce. To sell 16 ounces of marijuana per day, the price must be cut to $12.20. The marginal revenue of the 16th ounce is Multiple Choice $12. $7.70 . $16. $-0.30. $12.20.
Johnny Rockabilly has just finished recording his latest CD. The company can produce the CD with no fixed cost and a variable cost of $18 per CD. His record company's marketing department determines that the demand for the CD is as follows: Complete the following table by computing total revenue for each quantity listed and marginal revenue for each 5,000 increase in the quantity sold. Price Number of CDs Total Revenue Marginal Revenue (Dollars) (Dollars) (Dollars) 30 10,000 28 15,000 26 20,000 24 25,000 22 30,000 20 35,000 Profit is maximized at a quantity of $? CDs and a price of $ ? . This results in a profit of $ ? If you were Johnny's agent, you would advise Johnny to demand a recording fee of from the record company. $ ?
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