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 (+) or Loss (-) amount
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 amount)
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) Compute their 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.