You have been hired by a monopoly to analyze the following production data and prepare a proposal suggesting how to maximize profits.
Here is what the chart looks like:
Monolopy 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 recommendatioon 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 can not possibly be correct