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Econ monopoly homework

Econ monopoly homework - Compute MR and fill it into the...

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A monopolist’s demand curve is given in the top graph, and the raw data for the curve is given in Table 1. Fill in the values of TR in Table 1. The values for TC are also given in Table 1. Use what you have at this point to find the profits at all levels of output. Plot these profit values as functions of Q in the lower graph. The output level for maximum profit is ___________, and the price that should be charged to max profit is_______. Compute MC and fill it into the table.
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Unformatted text preview: Compute MR and fill it into the table. Draw MR and MC in the top graph and discuss the significance of the intersection point between MR and MC in view of the profit graph in the lower figure. In particular, why does MR = MC define a profit maximum? Q P TR TC Profit ATC MC MR 1 92.5 50.5 * * 2 85 52 3 77.5 54.5 4 70 58 5 62.5 62.5 6 55 68 7 47.5 74.5 8 40 82 9 32.5 90.5 10 25 100 11 17.5 110.5 12 10 122...
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