GRADUATE STUDIES Practice Question 1 The table below shows the demand for a product produced by a monopolist, who has a constant marginal cost and an average total cost of GH¢45.00 per Quantity (thousand's of units) Price (cedis per unit) 0 120 1 105 2 90 3 75 4 60 5 45 6 30 UPSA 25 GRADUATE STUDIES a. Calculate the total revenue and marginal revenue for each level of quantity. b. What are the profit-maximizing level of output and the price of the product? c. Calculate the Lerner Index for the industry.
GRADUATE STUDIES Practice Question 1 The table below shows the demand for a product produced by a monopolist, who has a constant marginal cost and an average total cost of GH¢45.00 per Quantity (thousand's of units) Price (cedis per unit) 0 120 1 105 2 90 3 75 4 60 5 45 6 30 UPSA 25 GRADUATE STUDIES a. Calculate the total revenue and marginal revenue for each level of quantity. b. What are the profit-maximizing level of output and the price of the product? c. Calculate the Lerner Index for the industry.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter9: Monopoly
Section: Chapter Questions
Problem 33P: Draw a monopolists demand curve, marginal revenue, and marginal cost curves. Identify the...
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![GRADUATE STUDIES
Practice Question 1
The table below shows the demand for a product
produced by a monopolist, who has a constant
marginal cost and an average total cost of GH¢45.00 per
Quantity
(thousand's of units)
Price
(cedis per unit)
0
120
1
105
2
90
3
75
4
60
5
45
6
30
UPSA
25
GRADUATE STUDIES
a. Calculate the total revenue and marginal
revenue for each level of quantity.
b. What are the profit-maximizing level of
output and the price of the product?
c. Calculate the Lerner Index for the industry.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F70a03515-c043-436b-8f0e-233f33588c95%2F6c53b9c6-2a6e-4d73-ac91-ff4d5cfdd04e%2F5wtvsvl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:GRADUATE STUDIES
Practice Question 1
The table below shows the demand for a product
produced by a monopolist, who has a constant
marginal cost and an average total cost of GH¢45.00 per
Quantity
(thousand's of units)
Price
(cedis per unit)
0
120
1
105
2
90
3
75
4
60
5
45
6
30
UPSA
25
GRADUATE STUDIES
a. Calculate the total revenue and marginal
revenue for each level of quantity.
b. What are the profit-maximizing level of
output and the price of the product?
c. Calculate the Lerner Index for the industry.
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