a Complete the following table which summarizes the weekly s

(a) Complete the following table which summarizes the weekly sales and cost situation confronting a monopolist:

Average TotalCost

(c) At what rate of output is total revenue maximized within this range? (Choose the highest level.)
(d) What are the values of MR and MC at the revenue-maximizing rate of output?

MR = $
MC = $

(e) At what rate of output are profits maximized? (Choose the highest level.)

(f) What are the values of MR and MC at the profit-maximizing rate of output?

MR = $
MC = $
(g) What are total profits at that output rate?

(h) If a competitive industry confronted the same demand and costs, how much output would it produce in the short run? (Enter the closest whole unit of output.)

Price	QuantityDemanded	Total Revenue	MarginalRevenue	Total Cost	Marginal Cost	Average TotalCost
$22	0	$	$ ---	$ 4	$ --	$ ---
20	1	$	$	8	$	$
18	2	$	$	13	$	$
16	3	$	$	19	$	$
14	4	$	$	27	$	$
12	5	$	$	37	$	$
10	6	$	$	51	$	$
8	7	$	$	69	$	$

Solution

a. The required table is as below:

Price P

Quantity Demanded Q

Total

Revenue

P×Q

Marginal Revenue

Total Cost

Marginal
Cost

Average Total Cost

$22

0

$0

$ ---

$ 4

$ --

$ ---

20

1

$20

$20

   8

$4

$8

18

2

$36

$16

13

$5

$6.5

16

3

$48

$12

19

$6

$6.33

14

4

$56

$8

27

$8

$6.75

12

5

$60

$4

37

$10

$7.4

10

6

$60

$0

51

$14

$8.5

   8

7

$56

-$4

69

$18

$9.85

c. The maximum total revenue is $60. It reflects for the output level 5 and 6. Therefore, the required output level is 5 and 6.

d. Marginal revenue (MR) = $0

    Marginal cost (MC) = $14

e. Profits would be maximum where MR = MC. This is in the output level 4.

f. MR = $8

    MC = $8

Price P	Quantity Demanded Q	Total Revenue P×Q	Marginal Revenue	Total Cost	Marginal Cost	Average Total Cost
$22	0	$0	$ ---	$ 4	$ --	$ ---
20	1	$20	$20	8	$4	$8
18	2	$36	$16	13	$5	$6.5
16	3	$48	$12	19	$6	$6.33
14	4	$56	$8	27	$8	$6.75
12	5	$60	$4	37	$10	$7.4
10	6	$60	$0	51	$14	$8.5
8	7	$56	-$4	69	$18	$9.85