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Marketing
QID: #4934
Subject: Marketing
Status: Verified Solution Available
A monopolist faces the following demand and cost schedules. Complete the table and answer the following questions.
Price
Quantity
Total Cost
Total Revenue
Marginal Revenue
Marginal Cost
$50
20
$100
$49
21
$110
$48
22
$125
$47
23
$145
$46
24
$170
$45
25
$200
a. How much output should the monopolist produce?
b. What price should the firm charge?
c. What is the maximum amount of profit that this firm can earn?
d. Should the firm shut down? Why or why not?
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