c. Suppose the government imposes a tax of $50,000 per week on baseball production. Now what price should Ed charge, how many baseballs should he sell, and what will his profit (or loss) be?
c. Suppose the government imposes a tax of $50,000 per week on baseball production. Now what price should Ed charge, how many baseballs should he sell, and what will his profit (or loss) be?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Can you answer C for please?
Transcribed Image Text:c. Suppose the government imposes a tax of $50,000 per week on baseball production. Now what price should Ed charge, how many baseballs should he sell, and what will his profit (or loss) be?
Transcribed Image Text:### Monopoly Production Table
Ed Scahill has acquired a monopoly on the production of baseballs. He faces the demand and cost situation presented in the table below.
| Price | Quantity (per week) | Total Revenue | Marginal Revenue | Total Cost | Marginal Cost |
|--------|---------------------|---------------|------------------|------------|---------------|
| $20 | 15,000 | | | $330,000 | |
| 19 | 20,000 | | | 365,000 | |
| 18 | 25,000 | | | 405,000 | |
| 17 | 30,000 | | | 450,000 | |
| 16 | 35,000 | | | 500,000 | |
| 15 | 40,000 | | | 555,000 | |
**Task:**
a. Fill in the remaining values in the table.
**Explanation:**
- **Price**: The selling price of each baseball.
- **Quantity (per week)**: The number of baseballs produced and sold each week.
- **Total Revenue**: The total income generated from selling the baseballs.
- **Marginal Revenue**: The additional revenue gained from selling one more unit.
- **Total Cost**: The total expense incurred in the production of baseballs.
- **Marginal Cost**: The cost of producing one additional unit.
This table helps to analyze Ed Scahill's position in terms of revenue and cost, which is crucial for making informed pricing and production decisions in a monopoly market.
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