A. Johnny (a monopolist) has just finished recording his latest CD. His record company's marketing department determines that the demand for the CD is as follows: Price $24 Number of CDs Total Revenue Marginal Revenue Total Cost Marginal Cost 1000 22 2000 20 3000 18 4000 16 5000 14 6000 The company can produce the CD with no fixed cost and a variable cost of $5 per CD. a. Complete the table by calculating total revenue, marginal revenue, total cost and marginal cost for the quantity of output produce.

A. Johnny (a monopolist) has just finished recording his latest CD. His record company's marketing department determines that the demand for the CD is as follows: Price $24 Number of CDs Total Revenue Marginal Revenue Total Cost Marginal Cost 1000 22 2000 20 3000 18 4000 16 5000 14 6000 The company can produce the CD with no fixed cost and a variable cost of $5 per CD. a. Complete the table by calculating total revenue, marginal revenue, total cost and marginal cost for the quantity of output produce.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter13: Monopoly And Antitrust

Section: Chapter Questions

Problem 13P

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he company can produce the CD with no fixed cost and a variable cost of $5 per CD.a. Find total revenue for quantity equal to 10,000, 20,000, and so on. What is the marginal revenue for each 10,000 increase in the quantity sold?b. What quantity of CDs would maximize profit? What would the price be? What would the profit be?c. If you were Johnny's agent, what recording fee would you advise Johnny to demand from the record company? Why? Johnny Rockabilly has just finished recording his latest CD. His record company's marketing department determines that the demand for the CD is as follows:PriceNumber of CDs$2410,0002220,0002030,0001840,0001650,0001460,000The company can produce the CD with no fixed cost and a variable cost of $5 per CD.
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