Solutions? 9. (Use the following information for Questions 9-12) Con monopolist

Question

Solutions? 9. (Use the following information for Questions 9-12) Con monopolist firm that faces a particular demand some relevant information based on that demand curve b a single-price Quantity T Price Total Revenue Marginal Revenue 0 10 6 5 What is the value of X? (a) 0 (b) 6 (c) 10 (d) Unknown, given the information provided 10. What is the value of Y? (a) 5 (b) 6 (c) 8 (d) Unknown, given the information provided. 11. What is the value of Z? (a) 5 (b) 15 (c) 25 (d) Unknown, given the information provided. 12. How many units will the firm produce? (b) 2 (d) Unknown, given the information provided.

Explanation / Answer

Q9
Answer
Option c
MR of n th unit=(TR of n units -TR of p units)/(n-p)...................n>p
=10-0=10

Q10
Answer
Option c
Total revenue=sum of marginal revenues
=10+6=16
Price=TR/Q=16/2=8

Q11
Answer
Option b
The TR=P*Q=5*3=$15
Q12
Option d
to find the optimum quantity we need marginal cost.

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