The marginal cost of the production is always 13.00 and the profit maximizing output, average a total cost is $20.00

The following table shows a demand schedule facing a monopolist.

Quantity: 0 1 2 3 4 5 6 7 8 9 10

Prices: 25 25 24 23 22 21 20 19 18 17 16

What is the profit maximizing (or loss minimizing) output for this?
What is the price at which that output will sell in the market?
Compute the total cost
Compute the total revenue
compute profit or loss at the maximizing output level

Solutions

Expert Solution

Rahul Sunny answered 1 year ago

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