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Assume a monopolistic firm with a constant marginal cost (MC). The firm's demand schedule is given by table 1 below. Calculate the firm's total revenue.

Assume a monopolistic firm with a constant marginal cost (MC). The firm's demand

schedule is given by table 1 below. Calculate the firm's total revenue. Average revenue and

marginal cost.

Output Price (Rands) Total Revenue Marginal Revenue

3 300

5 250

8 220

9 200

13 180

15 160

19 140

24 100

30 60

1.1 Find the firm's total revenue schedule, entering the data into the table where

indicated. (10)

1.2 Use these data to determine the marginal revenue schedule (Show calculations) (10)

1.3 Assuming a constant marginal of R40, what output level and price will maximize the firm's

profit?

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