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Consider the monopoly described in the following table. Quantity Price ($) Total Revenue ($) Marginal Revenue ($) Total Cost ($) Marginal Cost ($) Profit ($)
Consider the monopoly described in the following table.
Quantity | Price ($) | Total Revenue ($) | Marginal Revenue ($) | Total Cost ($) | Marginal Cost ($) | Profit ($) |
---|---|---|---|---|---|---|
0 | 320 | 0 | -- | 140 | -- | -140 |
2 | 305 | 610 | 305 | 158 | 9 | 452 |
4 | 290 | 1,160 | 275 | 168 | 5 | 992 |
6 | 275 | 1,650 | 245 | 188 | 10 | 1,462 |
8 | 260 | 2,080 | 215 | 228 | 20 | 1,852 |
10 | 245 | 2,450 | 185 | 296 | 34 | 2,154 |
12 | 230 | 2,760 | 155 | 392 | 48 | 2,368 |
14 | 215 | 3,010 | 125 | 522 | 65 | 2,488 |
16 | 200 | 3,200 | 95 | 712 | 95 | 2,488 |
18 | 185 | 3,330 | 65 | 962 | 125 | 2,368 |
20 | 170 | 3,400 | 35 | 1,302 | 170 | 2,088 |
22 | 155 | 3,410 | 5 | 1,762 | 225 | 1,648 |
24 | 140 | 3,360 | -25 | 2,322 | 280 | 1,038 |
What are the profit-maximizing quantity and price?
How much is the monopolist making in profits?
What would the equilibrium price and quantity have been if the market were competitive?
Calculate the deadweight loss caused by the monopolist.
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