A pure monopolistic firm knows the following about its costs and revenue. The firm would like to maximize profit and has hired a consultant for advice.

Price Q of Output Total Revenue Total Cost Total Fixed Cost

P? 1,30013,000 8,000 2,200

Average Total Cost Average Variable Cost MC MR

ATC? AVC? 8 4

Part 1. Price

Part 2: Average Total Cost

Part 3. Average Variable Cost

Part 4. What is the value of the profit or loss (-) at the current output ( include the - sign if it's a loss)

Part 5. Consultant's Advice: As a consultant, what advice would you giveto this firm:

(Choose ONE answer from the following)**worth 5 marks

1. Firm is profit maximizing/loss minimizing

2. Firm should reduce quantity of output

3. Firm should increase quantity of output

4. Firm should shutdown operations

5. The given number set is inconsistent