Question

Economics 242 ce HW#6 Nov. 2.019 Price (5) 200 300 Quantity 350 MR Answer questions 1 - 5 from the Figure above. 1. Identify the output level this firm will produce 2. At this output level what is the price? 3. At this output level calculate total revenue 4. At this output level, calculate total profit or loss 5. At this output level, calculate unit profit or loss Quantity Sold A Monopoly Firm Price Marginal per Unit Revenue SO Marginal Cost $17 SO 16 10 12 Answer questions 6 - 10 from the Table above 6. The price this monopolist will charge is 7. Total revenue to the monopolist at the profil-maximizing output level is 8. If this were a competitive industry, how many units would be sold? 9. If this were a competitive industry what would be the price of this product? 10. The monopolist will maximize profit by selling units.

Answer 1

Ans1) 200

In monopoly, MR = MC

Ans2) $ 15

Price is determined by the demand curve

Ans3) $ 3000

Total revenue = 15*200 =$ 3000

Ans4) 600

Loss = 200*18 - 3000 = 600

Ans5) 3

Loss per unit  = 18 - 15 = 3