Question
Q3 Consider the following data regarding a monopoly firm and answer the questions given below it. 15 marks Quantity 4 6 8 10 12 14
Q3 Consider the following data regarding amonopoly firmand answer the questions given below it. 15 marks
Quantity | 4 | 6 | 8 | 10 | 12 | 14 |
AR | 174 | 156 | 138 | 120 | 102 | 84 |
MR | 156 | 120 | 84 | 48 | 12 | 24 |
AC | 180 | 140 | 126 | 120 | 117 | 115.72 |
MC | 72 | 60 | 84 | 96 | 102 | 108 |
a) What will be the price, output and profit/loss for aregulated monopolistthat sets price according toMarginal Cost Pricing control system?
Price = Output = TR = TC =
Total Profit/loss = Profit/loss per unit =
b)What will be the price, output and profit/loss for aregulated monopolistthat sets price according toFair Return Pricing control system?
Price = Output = TR = TC =
Result:
c)What will be the level of price, output and amount of profit/loss for anunregulated monopolist?
Price = Output = TR = TC =
Total Profit/loss = Profit/loss per unit =
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