Use the table below to answer the following questions:QuantityDemand (Price)Marginal RevenueMarginal CostAverage Cost1$120012005005002110010002753883100080022533349006002503135800400400330670020050035876000700407 What is this firm’s profit-maximizing price? What is its profit-maximizing output?What is the firm’s average profit? What is the firm’s total profit?If at least one consumer is willing to pay $1200 for this product, why won’t the monopolist charge $1200?

In monopoly , Profit is maximum where MR = MC MR is the Marginal revenue MC is marginal cost

Answered: Use the table below to answer the…

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter10: Price-searcher Markets With Low Entry Barriers

Section: Chapter Questions

Problem 16CQ

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Use the table below to answer the following questions:

Quantity	Demand (Price)	Marginal Revenue	Marginal Cost	Average Cost
1	$1200	1200	500	500
2	1100	1000	275	388
3	1000	800	225	333
4	900	600	250	313
5	800	400	400	330
6	700	200	500	358
7	600	0	700	407

What is this firm’s profit-maximizing price? What is its profit-maximizing output?
What is the firm’s average profit? What is the firm’s total profit?
If at least one consumer is willing to pay $1200 for this product, why won’t the monopolist charge $1200?

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