Question 2 WOU Records decides to release an album by the group Cat and the Kittens. It produces the album with no xed cost, but

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Question 2 WOU Records decides to release an album by the group Cat and the Kittens. It produces the album with no xed cost, but the total cost of downloading an album to a CD and paying Mary her royalty is RM6 per album. WOU Records can act as a single-price monopolist. Its marketing division nds that the demand schedule for the album is as shown in the accompanying table. Price of album (RM) Quantity of album demanded 22 0 20 1000 18 2000 16 3000 14 4000 12 5000 10 6000 8 7000 (a) Calculate the total revenue and the marginal revenue per album. [10 marks] (0) Cat renegotiates her contract and now demands a higher royalty per album. The marginal cost rises to be constant at RM14. To maximize prot, detennjne the level of output and price it should charge for each album. [15 marks]