The demand schedule of Karachi electric (KE) (known as monopolist) is given as below. You need to find the missing values using TR-TC & MR-MC approaches to analyze its cost of production and profit maximizing point. Output Price Total Cost Total Revenue MC MR Rs.24 Rs.10 1 21 14 18 20 15 28 4 12 38 9 50 a. Find the missing values of Total Revenue column b. Find the output level that maximizes the firm's profit, using TR-TC approach c. What price should the firm set to achieve maximum profit? d. Complete the final two columns to verify that the same conclusions are reached using the MR = MC rule. e. Compare both the results and comment on the business and its position.

The demand schedule of Karachi electric (KE) (known as monopolist) is given as below. You need to find the missing values using TR-TC & MR-MC approaches to analyze its cost of production and profit maximizing point. Output Price Total Cost Total Revenue MC MR Rs.24 Rs.10 1 21 14 18 20 15 28 4 12 38 9 50 a. Find the missing values of Total Revenue column b. Find the output level that maximizes the firm's profit, using TR-TC approach c. What price should the firm set to achieve maximum profit? d. Complete the final two columns to verify that the same conclusions are reached using the MR = MC rule. e. Compare both the results and comment on the business and its position.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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