The Output, Revenue and Cost data in the table below applies to a hypothetical market gardening firm supplying produce to a local farmer's market.

1. Fill in the blanks in the table below where a $ is indicated. (Round all numbers to 2 decimals).

Profit-Maximizing Output Determination for a Monopoly
Quantity Demanded	P	TR	MR	TC	MC	ATC	Profit or Loss
0	$55	$		$70			$
1	$50	$	$	$72	$	$	$
2	$45	$	$	$75	$	$	$
3	$40	$	$	$80	$	$	$
4	$35	$	$	$87	$	$	$
5	$30	$	$	$98	$	$	$
6	$25	$	$	$115	$	$	$
7	$20	$	$	$140	$	$	$
8	$15	$	$	$170	$	$	$
9	$10	$	$	$205	$	$	$

2. Determine the firm's profit-maximizing output using the TR-TC method. Show your calculations including the following:

a. Price * Quantity sold to calculate your Total Revenue

b. Fixed Costs + Variable Costs to calculate your Total Costs

c. Your Profit or Loss

3. Determine the firm's profit-maximizing output using the MR-MC method. Answer the following questions:

a. At what (approximate) level of demand would you maximize your profit?

b. State why you chose your answer in part a.

c. Do TR-TC and MR-MC calculations produce the same level of demand in profit maximization?

Defend your answer. (Hint: remember that MR must equal or exceed MC)

4. Graph the profit-maximizing output problem using the Marginal Revenue-Marginal Cost Approach.

a. Include the ATC curve, Demand (Price) curve, MC curve, and MR curve.

b. Label the ATC curve, Demand (Price) curve, MC curve, and MR curve.

c. Label the point where you maximize your profits.

d. Label the Market Price point (including the approximate price.)

e. Label the Market Demand point (under a market price scenario including the

approximate demand).

f. Label the Marginal Cost Pricing point (including the approximate price.)

g. Label the Market Demand point (under a marginal cost pricing scenario) including the

approximate demand).

h. Label the Fair-Return Pricing point (including the approximate price).

i. Use the same chart title, axis titles, and fonts for chart title, axis titles and axis as you used in the example graph.