McDonald's Variable Costs Fixed Cost Total Cost Price 5,000 5,000 Total Revenue Profit Marginal Costs Marginal Revenue Quantity 1,000 500 5,500 4.0 4000 -1,500 xxx Xxx 2,500 4,000 9,000 1,000 1,400 2,400 3,400 6,000 6,400 3.5 8750 2,750 0.3 3.17 5,000 3.0 12000 5,600 0.3 2.17 5,000 5,000 5,000 5,000 7,400 2.0 18000 10,600 0.2 1.20 13,000 4,600 8,400 15,000 1.0 13000 0.3 -1.25 20,000 10,000 0.5 10000 -5,000 0.9 -0.43 45,000 31,250 36,250 0.3 13500 -22,750 0.9 0.14

McDonald's Variable Costs Fixed Cost Total Cost Price 5,000 5,000 Total Revenue Profit Marginal Costs Marginal Revenue Quantity 1,000 500 5,500 4.0 4000 -1,500 xxx Xxx 2,500 4,000 9,000 1,000 1,400 2,400 3,400 6,000 6,400 3.5 8750 2,750 0.3 3.17 5,000 3.0 12000 5,600 0.3 2.17 5,000 5,000 5,000 5,000 7,400 2.0 18000 10,600 0.2 1.20 13,000 4,600 8,400 15,000 1.0 13000 0.3 -1.25 20,000 10,000 0.5 10000 -5,000 0.9 -0.43 45,000 31,250 36,250 0.3 13500 -22,750 0.9 0.14

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

100%

As monopoly, how much should MCDonalds chrage for its hamburguers to maximize profit according to the table.

McDonald's
Variable Costs Fixed Cost Total Cost Price
5,000
5,000
Total Revenue
Profit
Marginal Costs Marginal Revenue
Quantity
1,000
500
5,500
4.0
4000
-1,500 xxx
Xxx
2,500
4,000
9,000
1,000
1,400
2,400
3,400
6,000
6,400
3.5
8750
2,750
0.3
3.17
5,000
3.0
12000
5,600
0.3
2.17
5,000
5,000
5,000
5,000
7,400
2.0
18000
10,600
0.2
1.20
13,000
4,600
8,400
15,000
1.0
13000
0.3
-1.25
20,000
10,000
0.5
10000
-5,000
0.9
-0.43
45,000
31,250
36,250
0.3
13500
-22,750
0.9
0.14

Definition Definition Market structure in which a single company dominates the entire industry. In a monopoly market, there are no close substitutes for the goods and services offered by the monopoly.

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