Use the table below to answer the following questions:QuantityDemand (Price)Marginal RevenueMarginal CostAverage Cost1$120012005005002110010002753883100080022533349006002503135800400400330670020050035876000700407 What is this firm’s profit-maximizing price? What is its profit-maximizing output?What is the firm’s average profit? What is the firm’s total profit?If at least one consumer is willing to pay $1200 for this product, why won’t the monopolist charge $1200?

In monopoly , Profit is maximum where MR = MC MR is the Marginal revenue MC is marginal cost

Answered: Use the table below to answer the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

Use the table below to answer the following questions:

Quantity	Demand (Price)	Marginal Revenue	Marginal Cost	Average Cost
1	$1200	1200	500	500
2	1100	1000	275	388
3	1000	800	225	333
4	900	600	250	313
5	800	400	400	330
6	700	200	500	358
7	600	0	700	407

What is this firm’s profit-maximizing price? What is its profit-maximizing output?
What is the firm’s average profit? What is the firm’s total profit?
If at least one consumer is willing to pay $1200 for this product, why won’t the monopolist charge $1200?

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions