Question

The table below shows the marginal revenue and costs for a monopolist. Demand, Costs, and Revenues Price Quantity Marginal Revenue Marginal Cost Average Total Cost (dollars) Demanded (dollars) (dollars) (dollars) $85 50 $85 $25 $139.00 79 150 76 85 103.30 73 250 64 64 87.50 67 350 52 61 80.00 61 450 40 67 77.00 55 550 28 77 77.00 Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign. a. What is the monopolist's profit-maximizing level of output? units b. What is the monopolist's profit at the profit-maximizing level of output? $

          The table below shows the marginal revenue and costs for a monopolist.
Demand, Costs, and Revenues
Price
Quantity
Marginal Revenue
Marginal Cost
Average Total Cost
(dollars)
Demanded
(dollars)
(dollars)
(dollars)
$85
50
$85
$25
$139.00
79
150
76
85
103.30
73
250
64
64
87.50
67
350
52
61
80.00
61
450
40
67
77.00
55
550
28
77
77.00
Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign.
a. What is the monopolist's profit-maximizing level of output?
units
b. What is the monopolist's profit at the profit-maximizing level of output?
$

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The table below shows the marginal revenue and costs for a monopolist.
Demand, Costs, and Revenues
Price
Quantity
Marginal Revenue
Marginal Cost
Average Total Cost
(dollars)
Demanded
(dollars)
(dollars)
(dollars)
85
5085
25139.00
79
150
76
85
103.30
73
250
64
64
87.50
67
350
52
61
80.00
61
450
40
67
77.00
55
550
28
77
77.00
Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign.
a. What is the monopolist's profit-maximizing level of output?
units
b. What is the monopolist's profit at the profit-maximizing level of output?

Added by Gregory F.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Rashmi Sinha

07/24/2023

Step 1

From the table, we can see that at a quantity of 350 units, MR = $52 and MC = $61. At any quantity below 350, MR is greater than MC, so the monopolist should produce more. At any quantity above 350, MC is greater than MR, so the monopolist should produce less. Show more…

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The table below shows the marginal revenue and costs for a monopolist Demand,Costs,and Revenues Price (dollars) Quantity Demanded Marginal Revenue (dollars) Marginal Cost (dollars) Average Total Cost (dollars) $85 50 $85 $25 $139.00 79 150 76 85 103.30 73 250 64 64 87.50 67 350 52 61 80.00 61 450 40 67 77.00 55 550 28 77 77.00 Instructions Enter your answer as a whole number lf you are entering a negative number include a minus sign a What is the monopolist's profit-maximizing level of output? units b.What is the monopolist's profit at the profit-maximizing level of output $

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