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) Computetheir TR, MR, ATC, MC and profit/loss schedules
B) Find out the equilibrium price, equilibrium output, unit profit, and total profit at the equilibrium point for these ingenious entrepreneurs.