menu
bartleby
search
close search
Hit Return to see all results

ToalCost ofPrice per Quantity DemandedProduction(dollars)$530540550560575595625Unit(units)$858075706560101213141516A monopoly producer of foreign language translation software faces a demand and cost structureas given in Table 15-1.1) Refer to Table 15-1. What is the marginal revenue from the sale of the 12th unit?A) S75B) S50C) S20D) -S52) Refer to Table 15-1. What is the firm's profit-maximizing output and what is the price chargedto sell this output?A) P S85: 0 10B) P-380; Q = 11C) P S70: Q 13D)P- S65: 0-143) Refer to Table 15-1. What is the amount of the firm's profit?A) S335B) S350C) S880D) $910

Question

How do you do number 1

ToalCost of
Price per Quantity Demanded
Production
(dollars)
$530
540
550
560
575
595
625
Unit
(units)
$85
80
75
70
65
60
10
12
13
14
15
16
A monopoly producer of foreign language translation software faces a demand and cost structure
as given in Table 15-1.
1) Refer to Table 15-1. What is the marginal revenue from the sale of the 12th unit?
A) S75
B) S50
C) S20
D) -S5
2) Refer to Table 15-1. What is the firm's profit-maximizing output and what is the price charged
to sell this output?
A) P S85: 0 10
B) P-380; Q = 11
C) P S70: Q 13
D)P- S65: 0-14
3) Refer to Table 15-1. What is the amount of the firm's profit?
A) S335
B) S350
C) S880
D) $910
help_outline

Image Transcriptionclose

ToalCost of Price per Quantity Demanded Production (dollars) $530 540 550 560 575 595 625 Unit (units) $85 80 75 70 65 60 10 12 13 14 15 16 A monopoly producer of foreign language translation software faces a demand and cost structure as given in Table 15-1. 1) Refer to Table 15-1. What is the marginal revenue from the sale of the 12th unit? A) S75 B) S50 C) S20 D) -S5 2) Refer to Table 15-1. What is the firm's profit-maximizing output and what is the price charged to sell this output? A) P S85: 0 10 B) P-380; Q = 11 C) P S70: Q 13 D)P- S65: 0-14 3) Refer to Table 15-1. What is the amount of the firm's profit? A) S335 B) S350 C) S880 D) $910

fullscreen
check_circleAnswer
Step 1

It is given that,

The above table depicts the demand and cost structures of foreign language translator software of a monopoly producer.

To find: The MR of 12th unit, the firm’s profit maximization price and output, and the amount of profit

We know that,

Marginal Revenue is the additional revenue that a firm can generate by selling an additional unit of output in the market; therefore, the MR of 12th unit can be derived by subtracting the 11th unit Total Revenue (TR) from 12th unit TR i.e.  TR (12th unit) – TR (11th unit). Thus, referring to the modified table 15-1, we can write:

MR (12th unit) = $900 - $880

                                 = $20

Therefore, for the above question (1) the correct option is (C).

 

fullscreen
Step 2

Now, we have to determine the profit maximizing price and output

We know that,

At the profit maximizing level, the amount of profit is maximum; therefore, referring to the modified table 15-1 we can conclude that the profit is maximum ($350) at two prices i.e. $70 and $75 where the profit-maximizing quantities are 13 and 12 units respectively. Ho...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Our solutions are written by experts, many with advanced degrees, and available 24/7

See Solution
Tagged in

Business

Economics

Related Economics Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: 4.Distinguish between explicit and implicit costs, giving examples of each. What are some explicit a...

A: Explicit costs and implicit costs: Explicit cost refers that, a direct payment made by firm to other...

question_answer

Q: The Fed argued that QE3 would work to reduce the unemployment rate. Use the federal funds market, th...

A: After the 2008 great recession, the US economy faced a credit crunch which has to be removed from th...

question_answer

Q: Consider the table of GDP and population for several imaginary countries. Countrv Wrigleyville Longh...

A: A.GDP per capita of Longhorn land:GDP per capita of Longhorn land can be calculated as follows:

question_answer

Q: the Fed began implementing QE3 in September 2012 and ended it in October 2014. The Fed argued that Q...

A: After the 2008 great recession, the US economy faced a credit crunch which has to be removed from th...

question_answer

Q: 3. We often work with production technologies that give rise to initially increasing marginal produc...

A: Production technologies or production function defines a relationship between the output and inputs....

question_answer

Q: 12. (Table: Labor Force Data) Using the data from the table Labor Force Data, suppose the labor fo...

A: Let us first define some concepts related to labor force participation rate.Labor force: In an econo...

question_answer

Q: There are several ways that governments can increase or decrease the money supply. Match the descrip...

A: Money supply is the stock of money in circulation in an economy in a given time period.Open market o...

question_answer

Q: The equation below represents a linear demand curve. Use the grid (See image) for your plots. Writea...

A: Demand function: 

question_answer

Q: Which of the following are true of an economy operating with a negative GDP gap? Check all that appl...

A: Gross Domestic Product (GDP at MP): This is the gross market value of all the final commodities gene...

Sorry about that. What wasn’t helpful?