1. Use the table given below to answer the following questions:

Table: Production and Pricing

Quantity Produced	Total Cost ($)	Total Revenue ($)
0	10	0
1	12	8
2	16	15
3	22	21
4	30	24
5	40	25

1. Calculate the price associated with selling this product. Does the table depict a monopolist or a competitive firm? Explain your reasoning clearly.
2. Find the profit maximizing output and the price associated with selling it in the market.
3. Discuss if the production and pricing decision is welfare maximizing or not.

1. Consider the possibility of building a bridge across a river. The bridge would cost $2 million to build (FC=$2 million) and nothing to maintain (MC=0). The following table given below illustrates the potential demand over the lifetime of the bridge:

Price	Quantity (in Thousands)
$8	0
7	100
6	200
5	300
4	400
3	500
2	600
1	700
0	800

1. What would be the profit-maximizing price that a company would charge? Would that be the efficient level of output? Why or why not? [Hint: Think of output in this case as the number of crossings across the bridge]

1. Should the company build this bridge if it was interested in maximizing profit? Why or why not? [Hint: Find out whether it makes profit or loss upon building]

1. If the government were to build the bridge, what price should it charge?

1. Should the government build this bridge?