1.

The market demand curve for a commodity and the total cost for a monopoly firm producing the commodity is given by the schedules below. Use the information to calculate the following: Quantity 0 1 2 3 4 5 6 7 8 Price 52 44 37 31 26 22 19 16 13 Quantity 0 1 2 3 4 5 6 7 8 Total Cost 10 60 90 100 102 105 109 115 125 (a) The MR and MC schedules(b) The quantities for which the MR and MC are equal(c) The equilibrium quantity of output and the equilibrium price of the commodity(d) The total revenue, total cost and total profit in equilibrium.

Answer» The market demand curve for a commodity and the total cost for a monopoly firm producing the commodity is given by the schedules below. Use the information to calculate the following:





























Quantity 0 1 2 3 4 5 6 7 8
Price 52 44 37 31 26 22 19 16 13






























Quantity 0 1 2 3 4 5 6 7 8
Total Cost 10 60 90 100 102 105 109 115 125



(a) The MR and MC schedules

(b) The quantities for which the MR and MC are equal

(c) The equilibrium quantity of output and the equilibrium price of the commodity

(d) The total revenue, total cost and total profit in equilibrium.


Discussion

No Comment Found

Related InterviewSolutions