QUESTION 1: MONOPOLY (6 marks)

1a. Complete the following total for marginal cost and marginal revenue.

b. How many units of output should this monopoly firm produce in order to maximize its profits? Will the monopolist produce more than 50 units? Why not?

c. What is the market price of the product, and what is the maximum profit?

d. On the table is there any quantity at which the profit will be maximized for a perfectly competitive firm? Explain.

Quantity Sold	Price	Marginal Revenue	Total Cost	Marginal Cost (FILL OUT THIS TABLE FOR PART a)
0	100	NA	5	NA
10	90		105
20	80		205
30	70		305
40	60		405
50	50		505
60	40		605
70	30		705
80	20		805
90	10		905
100	0		NA

Show your steps