Dreher\'s Designer Shirt Company, a pure monopolist, has the following cost and

Question

Dreher's Designer Shirt Company, a pure monopolist, has the following cost and revenue information.

(1) Fill MC, TR and MR in the table.


(2) The marginal cost of the 6th shirt =

(3) The total revenue from selling 8 shirts =


(4) The marginal revenue from selling the 2nd shirt =


(5) Dreher's Designer Shirt Company's fixed costs =


(6) The quantities that will achieve the maximum profit =


(7) The total profit at the profit-maximizing quantity =

Dreher's Designer Shirt Company, a pure monopolist, has the following cost and revenue information. (1) Fill MC, TR and MR in the table. (2) The marginal cost of the 6th shirt = (3) The total revenue from selling 8 shirts = (4) The marginal revenue from selling the 2nd shirt = (5) Dreher's Designer Shirt Company's fixed costs = (6) The quantities that will achieve the maximum profit = (7) The total profit at the profit-maximizing quantity =

Explanation / Answer

1) Fill MC, TR and MR in the table. For this, MC and MR just equal the change between two revenue and cost points. For an example, see number 2. 2) The marginal cost of the 6th shirt = 60 3) The total revenue from selling 8 shirts = Just subtract the amount you spent from the amount you made and add everything together. 4) The marginal revenue from selling the 2nd shirt= Just find the change in total revenue from above 5) Dreher's Designer Shirt Company's fixed costs = 100 6 &7) Figure this out by finding where MC=MR.

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