In the table below are given the output (X), T.C., and Price for a firm. Complete the following table, and then answer the questions at the bottom of the table.
X T.C P=A.R.=52, T.R, A.T.C, M.C, M.R, Profit
0 72
1 90
2 112
3 138
4 168
5 202
6 240
7 282
8 328
9 378
10 432
A. The profit maximization level of output (PMS) for a price of $52 is __________units of output with a (profit/loss) _______ of $ ________
B. At various prices below, indicate the Quantity Supplied and its corresponding Profit or Loss (exact amount)
Price Quantity Supplied Profit or Loss (exact)
54
46
42
38
34
26
Monopoly Problem
Mark Cherry and Eric Jones jointly patented a method for manufacturing Adam Smith bobble head dolls. The plan is for a very limited production run. They investigate the potential market for this unique novelty and find their sales and total cost schedules to be as follows: (The costs include a licensing fee to the estate of Adam Smith)
Sales Unit Price Total Cost
0 200 140
1 180 170
2 160 200
3 140 220
4 120 250
5 100 300
6 80 380
A) Calculate their TR, MR, ATC, MC and profit/loss schedules
B) Determine the equilibrium price, equilibrium output, unit profit, and total profit at the equilibrium point for these ingenious entrepreneurs.
42 __________ ________
38 __________ ________
34 __________ ________
26