You are the only barber in a town and thus you are a monopolist facing the following demand schedule. You have a constant marginal cost of $10 (the value of your time) and a fixed cost of $50 (rent for your barber shop). Quantity Price 1 $55 2 $45 3 $35 4 $25 a. Add another three columns: Total Revenue, Total Cost, and Profit. Assume that you must charge a single, uniform price. b. What quantity maximizes profit? Could you have found this without actually calculating the profit column? If so, explain how. c. Suppose the table above comes from the fact that one consumer is willing to pay $55, a second willing to pay $45, a third willing to pay $35, and a fourth willing to pay $25. What is the maximum possible profit given you can use first-degree price discrimination?
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Calculate the total revenue and total cost for each quantity: Revenue: $200 + $10 = $210 Cost: $50 + $10 = $60 Show more…
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The table below presents the demand schedule and marginal costs facing a monopolist producer. a. Fill in the total revenue and marginal revenue columns. Instructions: Enter your answers as a whole number. If you are entering any negative numbers, be sure to include a negative sign in front of those numbers. Leave no cells blank. Enter 0 if appropriate. b. If the firm's marginal cost is constant at $2, what is its profit-maximizing level of output? c. What price will the monopolist charge to maximize profits?
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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) $146 | 150 | $146 | $25 | $139.00 138 | 250 | 126 | 50 | 103.30 130 | 350 | 110 | 48 | 87.50 122 | 450 | 94 | 94 | 89.00 114 | 550 | 78 | 29 | 78.00 106 | 650 | 62 | 46 | 73.00 Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. 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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