1
answer
0
watching
75
views
graysnail61Lv1
28 Sep 2019
Question 3
Suppose a baseball manufacturer has acquired a monopoly on the production of baseballs, and faces the following demand and cost situation:
Price Quantity (Per week) Total revenue marginal revenue Total cost Marrginal 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
a Reconstruct the above table in your answer sheet and fill in the table.
b If the firm would like to maximise profits, what price should it charge and how many baseballs should it sell? Briefly explain.
Question 3
Suppose a baseball manufacturer has acquired a monopoly on the production of baseballs, and faces the following demand and cost situation:
| Price | Quantity (Per week) | Total revenue | marginal revenue | Total cost | Marrginal 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 |
a Reconstruct the above table in your answer sheet and fill in the table.
b If the firm would like to maximise profits, what price should it charge and how many baseballs should it sell? Briefly explain.
Raushan RajLv8
28 Sep 2019
