The economic question

Market Structure and Profit Maximisation

The table here contains information related to the demand and supply of a theme park with a private owner. This is the only park in the region; thus, it has monopolistic power. The park management team has collected data for its strategic decision making. You are asked to help the management team make the decision. Please note, the intention is to use a single price for all consumers. There are missing values that you need to calculate to do the tasks below. However, keep in mind that you DO NOT have to fill out all missing values. Just do enough to support your conclusion.

Here are your tasks:

a.If the monopolist wants to maximise the revenue, indicate the output and price levels at which the product can be sold in the market. Explain briefly why.

b.Indicate the output and price level when the monopolist wants to maximise profit. Explain briefly why.

REV Marginal TOTAL Marginal Marginal Revenues COST Coste Unite Profit 12.5- 0.06 28.60 - 12- 12.06 30.7- 11.5- 2.1- 11.06 Be 32.0 116 1.36 10.06 33.06 10.56 1.06 42- 9.06 34.4- 10 50- 8.0- 36.7- 6 9.5- 57- 7.0- 40.5-