Question 1Suppose there is only one supplier in the market of product X. The following table showspartial information of product X and the supplier's cost.Marginal CostPriceQuantity$1,7001,5001,4001,3001,2001,1001,00001380239034104305460650090075508006108700977060010790A. Determine the supplier's profit-maximizing output quantity. Explain your answer.B. At what price should the supplier charge to maximize its profit? Explain youranswer.C. Suppose at the profit-maximizing output quantity you have determined in part A,the average variable cost is $428.33 and the average total cost is $628.33.Calculate the total profit at the profit-maximizing output quantity

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Asked Nov 25, 2019
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Please help me to answer part B of Question 1.

Question 1
Suppose there is only one supplier in the market of product X. The following table shows
partial information of product X and the supplier's cost.
Marginal Cost
Price
Quantity
$1,700
1,500
1,400
1,300
1,200
1,100
1,000
0
1
380
2
390
3
410
430
5
460
6
500
900
7
550
800
610
8
700
9
770
600
10
790
A. Determine the supplier's profit-maximizing output quantity. Explain your answer.
B. At what price should the supplier charge to maximize its profit? Explain your
answer.
C. Suppose at the profit-maximizing output quantity you have determined in part A,
the average variable cost is $428.33 and the average total cost is $628.33.
Calculate the total profit at the profit-maximizing output quantity
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Question 1 Suppose there is only one supplier in the market of product X. The following table shows partial information of product X and the supplier's cost. Marginal Cost Price Quantity $1,700 1,500 1,400 1,300 1,200 1,100 1,000 0 1 380 2 390 3 410 430 5 460 6 500 900 7 550 800 610 8 700 9 770 600 10 790 A. Determine the supplier's profit-maximizing output quantity. Explain your answer. B. At what price should the supplier charge to maximize its profit? Explain your answer. C. Suppose at the profit-maximizing output quantity you have determined in part A, the average variable cost is $428.33 and the average total cost is $628.33. Calculate the total profit at the profit-maximizing output quantity

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Step 1

There is only one supplier in the market of product X. since given market is monopoly.

b.

In monopoly, the equilibrium price is determine by finding the profit maximizing level of output that ...

Price ($)
Total revenue($)
Marginal cost (4)
Marginal
revenue($)
Quantity
1700
1500
1
1500
1500
380
390
1400
2
2800
1300
3900
1300
1100
410
1200
4
4800
900
430
1100
5
5500
700
460
500
1000
6
6000
500
900
7
6300
300
550
800
6400
100
610
770
700
6300
-100
790
600
10
6000
-300
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Price ($) Total revenue($) Marginal cost (4) Marginal revenue($) Quantity 1700 1500 1 1500 1500 380 390 1400 2 2800 1300 3900 1300 1100 410 1200 4 4800 900 430 1100 5 5500 700 460 500 1000 6 6000 500 900 7 6300 300 550 800 6400 100 610 770 700 6300 -100 790 600 10 6000 -300

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