Question
The table below shows the information on quantity, price and cost of a monopolist. Assume that the fixed cost is $20. Quantity Price Total Variable
The table below shows the information on quantity, price and cost of a monopolist. Assume that the fixed cost is $20.
| Quantity | Price | Total Variable Cost |
| 10 | $9 | $20 |
| 20 | $8 | $60 |
| 30 | $7 | $120 |
| 40 | $6 | $200 |
| 50 | $5 | $300 |
| 60 | $4 | $420 |
Determine the optimal output of the firm and compute the profit or loss of the firm at the optimal output. At what price will the monopolist exit from the industry?
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
