. The table below shows the different combinations of price and quantity and the
ID: 1225017 • Letter: #
Question
. The table below shows the different combinations of price and quantity and the corresponding total cost for a monopoly firm. Complete the table. Find the combination of output and price that maximizes profit and calculate the maximum profit. Explain using marginal reasoning.
Quantity
Price
Total Revenue
Marginal Revenue
Total
Cost
Marginal Cost
0
$15
$10
1
13
13
2
11
17
3
9
22
4
7
28
5
5
35
Quantity
Price
Total Revenue
Marginal Revenue
Total
Cost
Marginal Cost
0
$15
$10
1
13
13
2
11
17
3
9
22
4
7
28
5
5
35
Explanation / Answer
Quantity
Price
Total Revenue
Marginal Revenue
Total
Cost
Marginal Cost
0
$15
15
-
$10
-
1
13
13
-2
13
3
2
11
22
9
17
4
3
9
27
5
22
5
4
7
28
1
28
3
5
5
25
-3
35
7
For the quantity 3 the total revnue is 11 as the marginal revenue is highest and the marginal costs at the quantity 2 is $ 4, which will be profitable for the monopolist.
Quantity
Price
Total Revenue
Marginal Revenue
Total
Cost
Marginal Cost
0
$15
15
-
$10
-
1
13
13
-2
13
3
2
11
22
9
17
4
3
9
27
5
22
5
4
7
28
1
28
3
5
5
25
-3
35
7
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.