Question

Exhibit 8-5 Demand and cost data for a monopolist Price Quantity TR MR TC Profit $10...

Exhibit 8-5 Demand and cost data for a monopolist

Price

Quantity

TR

MR

TC

Profit

$10

1

10

10

4

    9

2

8

    8

3

12

    7

4

16

    6

5

20

    5

6

24

    4

7

28

    3

8

32

    2

9

36

    1

10

40



By calculating the data provided in Exhibit 8-5, how much is the profit if the firm decides to produce 7 units?

24.

6.

0.

16.

12.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

We have calculated TR, MR and profit for each level. Formulas are provided in header of table.

Price, P Quantity, Q TR=P*Q MR= Change in TR/Change in Q TC Profit, TR-TC
10 1 10 10 4 6
9 2 18 8 8 10
8 3 24 6 12 12
7 4 28 4 16 12
6 5 30 2 20 10
5 6 30 0 24 6
4 7 28 -2 28 0
3 8 24 -4 32 -8
2 9 18 -6 36 -18
1 10 10 -8 40 -30

We can see in above table that profit is 0 if firm decides to produce 7 units.

So, correct option is

0

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Quantity (Q) Bottles per day Total Cost (TC) Marginal Cost (MC) (TC/Q) Total Revenue (TR) (P*Q)...
Quantity (Q) Bottles per day Total Cost (TC) Marginal Cost (MC) (TC/Q) Total Revenue (TR) (P*Q) Marginal Revenue (MR) (TR/Q) Economic profit/loss (Loss/Profit) 0 15 - 0 - (-15) 1 22 7 8 8 (-21) 2 27 5 16 8 (-16) 3 30 3 24 8 (-9) 4 32 2 32 8 (-2) 5 33 1 40 8 6 6 34 1 48 8 13 7 36 2 56 8 18 8 40 4 64 8 20 9 44 4...
Q P TR MR TC MC 0 10 ---- 4 1 9 8 2 8 11...
Q P TR MR TC MC 0 10 ---- 4 1 9 8 2 8 11 3 7 13 4 6 14 5 5 16 6 4 19 7 3 24 8 2 30 What profit should this firm be earning?
Assume an Unregulated Monopolist with the following demand and cost data. Q P TR MR Q...
Assume an Unregulated Monopolist with the following demand and cost data. Q P TR MR Q TC MC Profit / loss 0 130 0 50 1 120 1 90 2 110 2 120 3 100 3 140 4 90 4 170 5 80 5 210 6 70 6 260 7 60 7 320 8 50 8 390 9 40 9 470 #1) How much should the firm produce in order to maximize profits? #2) What price will the firm charge?...
Quantity TC Price of TR ATC AVC MC MR MR-MC Profit change in good profit 0...
Quantity TC Price of TR ATC AVC MC MR MR-MC Profit change in good profit 0 10 5 0 1 15 5 5 15 5 5 5 2 18 5 10 9 4 3 5 3 20 5 15 6.67 3.33 2 5 4 21 5 20 5.25 2.75 1 5 5 23 5 25 4.6 2.6 2 5 6 26 5 30 4.33 2.67 3 5 7 30 5 35 4.29 2.86 4 5 8 35 5 40 4.38...
Monopolistic Competition fill in table. Monopoly cost and revenue Quantity Price TR MR TC ATC MC...
Monopolistic Competition fill in table. Monopoly cost and revenue Quantity Price TR MR TC ATC MC Profit 0 xxx xxx 110 xxx xxx 1 90 144 2 29 -3 3 80 42 4 300 56.75 5 261 89 6 40 301 7 60 348.5 8 55 55 9 450 -23.5 10 0 90
In the following table are demand and cost data for a pure monopolist. Complete the table...
In the following table are demand and cost data for a pure monopolist. Complete the table by filling in the columns for total revenue, marginal revenue, and marginal cost. Answer these three questions: (a) what output will the monopolist produce? (b) What price will the monopolist charge? (c) What total profit will the monopolist receive at the profit-maximizing level of output?                                                                        Total            Marginal            Total            Marginal                           Quantity      Price          revenue           revenue               cost                  cost                                          0           $34          $______                                          $ 20                                    ...
A monopolist faces the following demand curve: Price Quantity $10 5 $9 10 $8 16 $7...
A monopolist faces the following demand curve: Price Quantity $10 5 $9 10 $8 16 $7 23 $6 31 $5 45 $4 52 $3 60 The monopolist has total fixed costs of $40 and a constant marginal cost of $5. What is the profit-maximizing level of output? Select one: ?a. 31 units ?b. 7 units ?c. 16 units ?d. 23 units
Exhibit I: Price Charged by MSL for Personnel Provided and Cost to MSL Quantity (Number of...
Exhibit I: Price Charged by MSL for Personnel Provided and Cost to MSL Quantity (Number of Personnel per Facility/House/Building/Apartment) Price Charged per Person (AR/Demand) (in `) Average Cost per Person (AC) (in `) 1 25,000 18,000 2 23,000 16,000 3 21,000 14,000 4 19,000 12,750 5 18,000 12,600 6 17,000 13,000 7 16,000 14,143 8 15,000 15,438 9 14,000 16,778 10 13,000 18,100 Prepared by the authors Sketch TR, MR, ATC, TC, and MC on a graph, and highlight the...
Reproduce this table in your answer. Fill in the empty spaces. Q P TR AR=D MR...
Reproduce this table in your answer. Fill in the empty spaces. Q P TR AR=D MR TC AC MC=S 0 12 0 $3 1 11 $4 2 10 $4.50 3 9 $5.50 4 8 $7.50 5 7 $10.50 6 6 $15.50 7 5 $24 8 4 $36 9 3 $52 10 2 $70 b) Is this firm a perfectly competitive firm or not? How can you tell? c)     Using the averages and marginals, find the profit maximizing level of output....
Q P Q TC 1 $36 1 $20 2 $32 2 $32 3 $28 3 $50...
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...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT