As a Cost Analyst at your firm, you are being asked to evaluate the profit maximizing quantity and price for your product to submit to your manager. Assume that your firm is a monopoly supplier of oil in your region, due to extensive trade restrictions.

Another team member in the Cost Analysis Department has compiled the necessary data below:

PRICE QUANTITY (in millions) lVlARGlNAL REVENUE TOTAL COST (in millions) AVERAGE TOTAL COST AVERAGE FIXED COST AVERAGE VARIABLE COST lVlARGlNAL cosT I $3.00 0 53.00 50.45 _ 52.87 1 $2.75 51.09 52.75 2 52.49 52.34 52.52 3 52.24 53.75 7 52.49 4 51.93 55.32 7 52.37 5 51.73 57.05 52.24 5 51.43 53.94 _ 52.11 7 51.22 510.99 L 51.98 3 $0.97 513.20 I 51.86 9 50.71 515.57 1 $1.73 10 50.45 513.10 l