The market demand curve for a commodity and the total cost for a monopoly firm producing the commodity is given by the schedule below : Use the information to calculate the following : (i) The MR and MC schedules. (ii) The quantites for which MR andMC are equal. (iii) The equilibrium quantity of output and the equilibrium price of the commodity. (iv) The total revenue, total cost and profit in equilibrium.

The market demand curve for a commodity and the total cost for a monop

1.	The market demand curve for a commodity and the total cost for a monopoly firm producing the commodity is given by the schedule below : Use the information to calculate the following : (i) The MR and MC schedules. (ii) The quantites for which MR andMC are equal. (iii) The equilibrium quantity of output and the equilibrium price of the commodity. (iv) The total revenue, total cost and profit in equilibrium.
Answer» SOLUTION :(i) (ii) At 6 units, MR=MC. (iii) Equilibrium is achieved when MR=MC. So, equilibrium quantity = 6 units and equilibrium price = Rs. 19. ltbtgt (IV) Total Revenue = Rs. 144 Total Cost = Rs. 109 Total PROFIT = TR-TC = 114 - 109 = Rs.5