b. What is the profit-maximizing price for this monopolist? 63 What is the profit-maximizing output? |units c. What is the monopolist's profit? $ 42 %24
b. What is the profit-maximizing price for this monopolist? 63 What is the profit-maximizing output? |units c. What is the monopolist's profit? $ 42 %24
Chapter9: Monopoly
Section: Chapter Questions
Problem 6SQP
Related questions
Question
I need help figuring out the answers for part b & c? Isn't the profit maximizing
Transcribed Image Text:Suppose a pure monopolist faces the following cost data, as shown by the table on the left, and the demand schedule, as shown on
the right.
a. Calculate the missing TR and MR amounts.
Instructions: Enter your answers rounded to two decimal places. If you are entering any negative numbers be sure to include a
negative sign (-) in front of those numbers.
Production and Costs
Demand
Total
Product
Average
Fixed Cost
Average
Variable
Cost
Average
Total Cost
Marginal
Cost
Quantity
Demanded
Total
Revenue
Marginal
Revenue
Price
$115
$
0.00
1
$60.00
$45.00
$105.00
$45
100
1
$
100.00
$
100.00
30.00
42.50
72.50
40
83
2
2$
166.00
$
66.00
3
20.00
40.00
60.00
35
71
3
$
213.00
$
47.00
4
15.00
37.50
52.50
30
63
4
$
252.00
$
39.00
5
12.00
37.00
49.00
35
55
$
275.00
$
23.00
10.00
37.50
47.50
40
48
6.
$
288.00
$
13.00
7
8.57
38.57
47.14
45
42
7
$
294.00
$
6.00
8
7.50
40.63
48.13
55
37
8
$
296.00
$
2.00
6.67
43.33
50.00
65
33
9
$
297.00
$
1.00
10
6.00
46.50
52.50
75
29
10
$
290.00
$
-7.00
Instructions: Enter your answers as a whole number.
b. What is the profit-maximizing price for this monopolist?
2$
63
What is the profit-maximizing output?
4 units
c. What is the monopolist's profit?
$
42
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