Question

Please teach me step by step how to solve the following table and questions thanks you John

Q1 The data below is for a firm operating in a monopoly situation. [6] Average Total Cost $ Price $ Quantity Total Revenue $ Marginal Revenue $ Marginal Costs Total Costs 72 15 74 14 9 78 13 10 84 12 11 92 11 12 102 10 13 126 9 14 164 8 15 a) Assume the monopolist is not regulated, and charges a single price to customers. Determine the Profit Maximizing Price Profit Maximizing Quantity Profit b) Assume the monopolist is now regulated to a fair return price. Determine the Profit Maximizing Price Profit Maximizing Quantity Profit

Answer 1

3 15 14 13 12 9-8. 78-74 - 4 To-9 10-9 il 11 12 13 8 10 ܘܐ Price Quantity Total Marginal Total Avg. Tota) Marginal Revenue & Revenue & Lost & Cost & cost $. 115X85 120 72 728=9 9 (14x9=126 126 - 129= 6 74 7419=81274-32- 10 130 (130-126)=4 78 7'3 132 2 84 7.6 6 132 92 77 130 -2 102 7.8 9 14 -4 126 9 120 164 38 formula used : Total Revenue (TR)= Poieex Quantity - Mas ginal Revenue (MR)= change in total revenue change in quantity Ang. Total Cest (ATC) - Total cost Quantity sold Marginal cost (MC)= change in total cost change in quantity 126 24. 8 15. 6 10.9

(a) Assume the monopolist is not regulated, and charges a single price to uistomer.. Determine the Profil maxinlizing price 14. Profit maximizing quantity 9. Profit JR-TC: 126-14:52 (b) Assume the monopolist is noko regulated, to fais return price. Determine the Profit máximizing pelice 13 profit quantityo 'do a + maki TR-TC=130-78 = profit TR-TC=