Question

# Exhibit 21-19 Quantity Sold Total Revenue Price (units) Total Cost Marginal Costs Marginal Revenue \$10 10...

Exhibit 21-19

 Quantity Sold Total Revenue Price (units) Total Cost Marginal Costs Marginal Revenue \$10 10 \$80 -- 100 -- 9 20 100 2 180 80 8 30 130 3 240 60 7 40 170 4 280 40 6 50 230 6 300 20 5 60 300 7 300 0 4 70 380 8 280 -20
 Refer to Exhibit 21-19. Fill in the missing values. Assume this is a single-price monopolist who is seeking to maximize profits. How many units will it sell? At what price? How much profit is made at the profit maximizing level of output?

A. fill table

 P Q TC MC TR MR 10 10 80 100 9 20 100 2 180 8 8 30 130 3 240 6 7 40 170 4 280 4 6 50 230 6 300 2 5 60 300 7 300 0 4 70 380 8 280 -2

TR=Price*Q

MR=chnage in TR/change in Q

MC=chnage in TC/change in Q

How many units will it sell? At what price?

Quanity: 40

price: 7.

Explanation:

Firm maximizes its profit where MR=MC. here at quantity 40 a,d price7, MR=MC. so firm will produce 40 units and charge 7 price.

How much profit is made at the profit maximizing level of output?

profit=TR-TC

=280-170

=110.

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