we\'re going to work with the following table, which describes a single monopoli
ID: 1226462 • Letter: W
Question
we're going to work with the following table, which describes a single monopolist. You will not be asked to submit the values for all cells - in fact, you'll only tell me two of them. But it might be a good idea to fill the whole thing out anyway.
A.You can fill in any cell that's empty (that doesn't have "--" in it). For this question, though, just tell me the value of Cell A, carefully following all numeric instructions.
B.You can fill in any cell that's empty (that doesn't have "--" in it). For this question, though, just tell me the value of Cell B, carefully following all numeric instructions.
C.You can fill in any cell that's empty (that doesn't have "--" in it). For this question, though, just tell me the firm's total profits at the profit-maximizing (or loss-minimizing) quantity. Carefully follow all numeric instructions. Enter a positive number (no sign) for profits and a negative number (with negative sign) for losses.
Quantity Price TC MC TR MR Profit/losses 5 $36 $117.50 -- -- 6 $33 $122.50 7 $30 $128 B 8 $27 $134 9 $24 $140.50 10 $21 $147.50 11 $18 $155 A 12 $15 $163Explanation / Answer
Answer ) complete solution of the table is given below.
a.) A= 7.5
b.) B = 12.
c.) profit-maximization level is achieved when MR=MC and its happening at output level 8 where both MR=MC= 6 and profit is $82.
MC TR MR Profit/Losses - 180 - 62.5 5 198 18 75.5 5.5 210 12 82 6 216 6 82 6.5 216 - 75.5 7 210 -6 62.5 7.5 198 -12 43 8 180 -18 17Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.