2 3 4 5 6 1 7 5. Use the table below to answer the following questions: Quantity Demand (Price) $1200 1100 1000 900 800 700 600 Marginal Revenue 1200 1000 800 600 400 200 0 Marginal Cost 500 275 225 250 400 500 700 Average Cost 500 388 333 313 330 358 407 a. What is this firm's profit-maximizing price? What is its profit-maximizing output? b. What is the firm's average profit? What is the firm's total profit? c. If at least one consumer is willing to pay $1200 for this product, why won't the monopolist charge $1200?
2 3 4 5 6 1 7 5. Use the table below to answer the following questions: Quantity Demand (Price) $1200 1100 1000 900 800 700 600 Marginal Revenue 1200 1000 800 600 400 200 0 Marginal Cost 500 275 225 250 400 500 700 Average Cost 500 388 333 313 330 358 407 a. What is this firm's profit-maximizing price? What is its profit-maximizing output? b. What is the firm's average profit? What is the firm's total profit? c. If at least one consumer is willing to pay $1200 for this product, why won't the monopolist charge $1200?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
5 a-e I need answered
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Last edit was seconds ago
11 + BIUA
2
3
4
5
6
7
1
$1200
1100
1000
5. Use the table below to answer the following questions:
Quantity
Demand (Price)
900
800
700
600
GD
2
BY V
6. Answer the following:
Marginal
Revenue
1200
1000
800
600
400
0
E IE
200
4
Marginal Cost
500
275
225
250
400
500
= 1 EX
700
5
Average Cost
500
388
333
313
330
358
407
a. What is this firm's profit-maximizing price? What is its profit-maximizing output?
b. What is the firm's average profit? What is the firm's total profit?
c. If at least one consumer is willing to pay $1200 for this product, why won't the
monopolist charge $1200?
d. Are there consumers who want the product but are not willing to pay the
profit-maximizing price the firm will charge? How can you tell?
V
e. If the firm could charge every consumer exactly what that consumer was willing to pay
(called perfect price discrimination), would the quantity the firm produced increase,
decrease, or remain the same? Would the firm's profits increase, decrease, or remain
the same? Explain your answers."
Transcribed Image Text:D
Last edit was seconds ago
11 + BIUA
2
3
4
5
6
7
1
$1200
1100
1000
5. Use the table below to answer the following questions:
Quantity
Demand (Price)
900
800
700
600
GD
2
BY V
6. Answer the following:
Marginal
Revenue
1200
1000
800
600
400
0
E IE
200
4
Marginal Cost
500
275
225
250
400
500
= 1 EX
700
5
Average Cost
500
388
333
313
330
358
407
a. What is this firm's profit-maximizing price? What is its profit-maximizing output?
b. What is the firm's average profit? What is the firm's total profit?
c. If at least one consumer is willing to pay $1200 for this product, why won't the
monopolist charge $1200?
d. Are there consumers who want the product but are not willing to pay the
profit-maximizing price the firm will charge? How can you tell?
V
e. If the firm could charge every consumer exactly what that consumer was willing to pay
(called perfect price discrimination), would the quantity the firm produced increase,
decrease, or remain the same? Would the firm's profits increase, decrease, or remain
the same? Explain your answers.
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