Q2. Market Structures: Chapter 8 Monopoly (7 marks) (a) This question is related to solved problem 8.1 in the textbook. Don has acquired a monopoly in the production of cricket balls and faces the demand and cost situation shown in the following Table-2. Table 2 Price Quantity Total Marginal Total Marginal Per week Revenue Revenue Cost Cost $20 15,000 $330,000 19 20,000 365,000 18 25,000 405,000 17 30,000 450,000 16 35,000 500,000 15 40,000 555,000 (i) Complete TR, MC and MC columns in Table-2. (1.5 marks) (ii) List and explain briefly the assumptions under which Don's monopoly for cricket ball firm operates. (2 marks) (iii) If Don wants to maximise profits what price should he charge and how many cricket balls should he sell? How much profit will he make? (1.5 marks) (iv) Suppose the government imposes a tax of $50,000 per week on cricket ball production. Now what price should Don charge, how many cricket balls should he sell and what will his profits be? (2 mark)