S.Port City Tatoos is a local monopoly._ The table below describes the market de
ID: 1123372 • Letter: S
Question
S.Port City Tatoos is a local monopoly._ The table below describes the market demand and total cost schedules. Price Total Marginal Total Cost Marginal Average S/tattoo)(tattoos/hour) Revenue Revemue (S/hour) Cost Total Cost Quantity 60 50 40 30 20 10 30 50 70 50 80 90 80 50 20 20 20 20 20 30 35 30 27.5 26 10 90 110 130 -10 -30 a. (4 points) Fill in the table for total revenue, marginal revenue, marginal cost, and average total cost. Remember to put marginal items in between units and round to one decimal placeif needed. b. (2 points) If Port City Tattoos is a single-price monopoly, what is the profit-maximizing quantity? What is the profit-maximizing price? Profit-maximizing quantity tattoos per hour Profit-maximizing price S 40 per tattoo c. (I point) At the profit-maximizing quantity and price, how much profit will Port City Tattoos can Profit s 80.70 (40-35)x2-10 per hour View as Text MacBoExplanation / Answer
Profit maximizing quantity is $2 per hour. Because at this quantity profit is maximum.
Profit = 40*2 - 70 = 80-70 = 10
If quantity is 3 then profit = 30*3 -90 =0
10>0. So Profit maximizing quantity is $2 per hour.
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