Question

The table below shows the marginal revenue and costs for a monopolist. Demand, Costs, and Revenues Price (dollars) Quantity Demanded Marginal Revenue (dollars) Marginal Cost (dollars) Average Total Cost (dollars) $78 100 $78 $25 $139.00 73 200 68 68 103.30 68 300 58 56 87.50 63 400 48 82 86.00 58 500 38 76 84.00 53 600 28 48 78.00 Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers.

a. What is the monopolist's profit-maximizing level of output? 200 Correct units

b. What is the monopolist's profit at the profit-maximizing level of output? $ 4000 Incorrect

Answer 1