Answer the following Questions for a Monopoly Firm.

Price	Quantity	TR	MR	MC	TC	Profit
$15,000	0		----	----	$50,000
14,000	1				$52,000
13,000	2				$53,000
12,000	3				54,000
11,000	4			$2,000
10,000	5				59,000
9,000	6			4,000
8,000	7				$69,000
7,000	8			$8,000
6,000	9
5,000	10
4,000	11			$18,000
3,000	12				$143,000

a) Fill in the missing information above for this Monopoly Firm for its monthly production. Note there are no numbers for MC and MR when Q=0. Please note that the Total Variable Cost (VC) of producing 9 units of output is $37,000 and the Average Total Cost (ATC) of producing 10 units of output is $10,100.

b) At which unit of output does Diminishing Marginal Returns start? Please explain your answer.

c) If this firm produces in the Short Run, determine its profit maximizing/loss minimizing output level. Please explain your answer using MC and MR.

d) If this firm produces in the Short Run, determine its profit maximizing/loss minimizing price.

e) If this firm produces in the Short Run, state its profit maximizing/loss minimizing profit amount (from the profit column) .

f) If this firm shuts down in the Short Run, determine its profit maximizing/loss minimizing profit amount. Please explain your answer.

g) What should this firm do in the Short Run in order to maximize its profits/minimize its loss (produce or shut down)? Please explain your answer using numbers.

h) Explain what this firm should do in the Long Run.

Answer rating: 100% (QA)

ANSWER a Here the fixed cost is 50000 because the total cost associated with 0 units of output is 50... View the full answer