Create the proposal suggesting how to maximize profits

Question

You have been hired by a monopoly to analyze the following production data and prepare a proposal suggesting how to maximize profits.

 

Monopoly Firm
Price	MR	TR	Q	TC	MC	ATC	AVC
6.4	3.1		1000	6400	3		3.24

 

The data provided by the company is incomplete. You are to complete columns TR and ATC in the chart and make a short-run recommendation, using one of the recommendation actions from the list below. Remember that your goal is to maximize profits. Prepare a one page paper that includes your solutions to the table, your recommendation action, and justification supporting your recommendation.

 

Recommendation actions:

 

1. Remain at current output level.
2. Increase output
3. Decrease output
4. Shut down
5. Uncertain-the figures provided cannot possibly be correct