Regnissik AG, a monopoly, holds exclusive rights to sell official superhero merchandise in Germany. It faces the following demand schedule for its T-shirts (sales in units per week):

Calculate the marginal revenue (MR) over each interval in the schedule—for example, between q = 0 and q = 20.
Recall that MR is the added revenue from an additional unit of production/sales and assume that MR is constant within each interval.
If marginal cost (MC) is constant at €20 and fixed cost is €400, what is the profit-maximizing level of output? What is the level of profit? Explain your answer using marginal cost and marginal revenue.
Repeat the exercise for MC = 50.

Transcribed Image Text:

PRICE QUANTITY DEMANDED 10 100 25 45 70 80 60 40 90 20 100 0