Question

Q	P	Q	TC
1	$36	1	$20
2	$32	2	$32
3	$28	3	$50
4	$24	4	$80
5	$20	5	$120

Please explain each answer

30. Consider Exhibit 3. What is the profit maximizing output for a monopolist that does not price discriminate?

A) 1 unit

B) 2 units

C) 3 units

D) 4 units

E) 5 units

31. What is the profit maximizing price for a monopolist that does not price discriminate?

a. $36

b. $32

c. $28

d. $24

e. $20

32. How much profit is the monopoly earning at the profit maximizing quantity?

a. $16

b. -$20

c. $32

d. $34

e. -$16

Answer 1

Q	P	Q	TC	TR	MC	MR	Profit
1	36	1	20	36		36	16
2	32	2	32	64	12	28	32
3	28	3	50	84	18	20	34
4	24	4	80	96	30	12	16
5	20	5	120	100	40	4	-20

MC of n the unit=(TC of n units -TC of p units )/(n-p)...............n>p

TR=P*Q

MR of n-th unit=(TR of n units -TR of p units)/(n-p)...................n>p

Q30
Option C
Q=3
the firm produces at MR=MC or the closet lower MC where Q=

Q31
option c
the price at the output level is $28

Q32
Option d
Profit=TR-TC
at the output level profit=$34

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