Microsoft Word - Economics 200 Bonusidoc 2) The rm depicted in the table below is in a PERFECTLY COMPETITIVE MARKET. Complete the following mble: (points) Quantity Price ($/ unit) Marginal revenue Total revenue Total cost Average total cost Marginal cost 0 $20 $200 10 $300 20 $460 30 $660 40 $1000 50 $1500 The prot maximizing price is $ The prot maximizing quantity is The rm is making $ in prot. 3) (7 points) A monopolist can produce its output at a constant average and constant marginal cost of: ATC=MC=5 The monopoly faces a demand curve given by the following function: Q= 534' And a marginal revenue curve that is given hv the inetinn: E Microsoft Word - Economics 200 Bonus.doc 2 /2 100% + 3) (7 points) A monopolist can produce its output at a constant average and constant marginal cost of: ATC = MC = 5 The monopoly faces a demand curve given by the following function: Q=53-P And a marginal revenue curve that is given by the function: MR = 53 - 2Q a) Draw the following: a. The firm's demand curve b. The firm's marginal revenue curve c. The firm's marginal cost curve b) What is the monopolist's profit maximizing price? c) What is the profit maximizing quantity for this monopolist? d) How much profit is the monopolist making? e) Suppose the market is no longer depicted by a monopoly, but has become perfectly competitive. What would the profit maximizing price and quantity be if the market were perfectly competitive?E Microsoft Word - Economics 200 Bonus.doc 1 / 2 1 - 100% + Economics 200 Bonus 1) Complete the table below: (7 points) Labor Capital | TP MP AP TFC TVC TC AFC AVC ATC MC 0 8 0 100 1 8 40 2 8 50 13 8 50 14 8 30 5 8 200 Labor is paid a wage of $50/day. All output is per day. Where: TP = total product; output; or quantity MP = marginal product AP = average product TFC = total fixed cost TVC = total variable cost TC = total cos AFC = Average fixed cost AVC = average variable cost ATC = Average total cost MC = marginal cost 2) The firm depicted in the table below is in a PERFECTLY COMPETITIVE MARKET. Complete the following table: (6points) Quantity Price Marginal Total Total cost Average Marginal ($/unit) revenue revenue total cost cost 0 $20 $200 10 $300 $460