Quantity, price, total revenue, and total cost for a monopoly firm that produces cement are listed in the table below. Quantity, (Q) (tons) Price (P) Total Revenue (TR) Total Cost (TC) 1 $1,050 $1,050 $1,050 2 $970 $1,940 $720 3 $890 $2,670 $870 4 $810 $3,240 $1,140 5 $730 $3,650 $1,550 6 $650 $3,900 $2,020 7 $570 $3,990 $2,600 Determine the firm's profit-maximizing price.
Quantity, price, total revenue, and total cost for a monopoly firm that produces cement are listed in the table below. Quantity, (Q) (tons) Price (P) Total Revenue (TR) Total Cost (TC) 1 $1,050 $1,050 $1,050 2 $970 $1,940 $720 3 $890 $2,670 $870 4 $810 $3,240 $1,140 5 $730 $3,650 $1,550 6 $650 $3,900 $2,020 7 $570 $3,990 $2,600 Determine the firm's profit-maximizing price.
Chapter25: Monopoly
Section: Chapter Questions
Problem 11E
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Question
- Quantity,
price , total revenue, and total cost for amonopoly firm that produces cement are listed in the table below.
|
Quantity, (Q) (tons) |
Price (P) |
Total Revenue (TR) |
Total Cost (TC) |
|
1 |
$1,050 |
$1,050 |
$1,050 |
|
2 |
$970 |
$1,940 |
$720 |
|
3 |
$890 |
$2,670 |
$870 |
|
4 |
$810 |
$3,240 |
$1,140 |
|
5 |
$730 |
$3,650 |
$1,550 |
|
6 |
$650 |
$3,900 |
$2,020 |
|
7 |
$570 |
$3,990 |
$2,600 |
Determine the firm's profit-maximizing price.
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