The demand and cost schedules for Petes Gold, a monopoly, are shown in the table
ID: 1177420 • Letter: T
Question
The demand and cost schedules for Petes Gold, a monopoly, are shown in the tables below.
Price
Quantity demanded
100
100
200
80
300
60
400
40
500
20
600
0
Quantity produced
Total cost
0
6,000
20
7,200
40
8,800
60
10,800
80
13,200
100
16,000
1 Calculate Pete's marginal revenue schedule. Draw the demand curve and the marginal revenue curve.
2 Calculate Pete's marginal and average cost schedules.
3 What are Pete's profit-maximizing output and price? What is Pete's economic profit? Explain your answer.
Price
Quantity demanded
100
100
200
80
300
60
400
40
500
20
600
0
Explanation / Answer
SEE the complete table for calculation
the profit maximization price will be $300 with 60 units of output and the economic profit will be equal to TR-TC
=$18000-$8800= $9200
I CAN DRAW the graphs but i don't see if i can attach the file for graph. let me know the process of attachment.
if ican, i will attach the graph.
let me know if you need anything else.
thanks
P Q TR MR TC MC AC 100 100 10000 6000 60 200 80 16000 300 7200 60 90 300 60 18000 100 8800 80 130 400 40 16000 -100 10800 100 270 500 20 10000 -300 13200 120 660 600 0 0 16000 140Related Questions
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