Suppose a pure monopolist faces the following cost data, as shown by the table on the left, and the demand schedule, as shown onthe 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 anegative sign (-) in front of those numbers.Answer is complete and correct.Production and CostsDemandAverageFixed|AverageVariableAverageTotalTotalMarginalQuantityTotalMarginalRevenuePriceProductCostDemandedRevenueCostCostCost$1150.00--1$60.00$45.00$105.00$451001$100.002$100.00230.0042.5072.5040832$166.00$66.00320.0040.0060.003571324213.002447.00415.0037.5052.5030634252.0039.0012.0037.0049.003555$275.0023.0010.0037.5047.504048$288.0013.0078.5738.5747.1445427$294.006.008.7.5040.6348.1355378.$296.002.0096.6743.3350.0065339.$297.001.00106.0046.5052.50752910$290.00$-7.00CO b. What is the profit-maximizing price for this monopolist?4%24

The profit-maximizing condition for the monopolist is: MR = MC or. MR > MC

Answered: b. What is the profit-maximizing price…

Business

Economics

b. What is the profit-maximizing price for this monopolist?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter25: Monopoly

Section: Chapter Questions

Problem 14E

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Question

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.
Answer is complete and correct.
Production and Costs
Demand
Average
Fixed
|Average
Variable
Average
Total
Total
Marginal
Quantity
Total
Marginal
Revenue
Price
Product
Cost
Demanded
Revenue
Cost
Cost
Cost
$115
0.00
-
-
1
$60.00
$45.00
$105.00
$45
100
1
$
100.00
2$
100.00
2
30.00
42.50
72.50
40
83
2
$
166.00
$
66.00
3
20.00
40.00
60.00
35
71
3
24
213.00
24
47.00
4
15.00
37.50
52.50
30
63
4
252.00
39.00
12.00
37.00
49.00
35
55
$
275.00
23.00
10.00
37.50
47.50
40
48
$
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
9
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
CO

b. What is the profit-maximizing price for this monopolist?
4
%24

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