Question

Using Table 1 as your reference, what is the firm's optimal production decision. That is, at what production level (Q_F) does the firm make the largest short-run profit? If FC increased by 5000 what does that do the optimal production and if MC increase by 50 what does that do? This is a monopoly.

P	Q	FC	VC	TC	AFC	AVC	ATC	MC	TR	MR	TProfit
600	0	40000	0	40000					0		-40000
550	50	40000	21000	61000	800	420	1220	420	27500	550	-33500
500	100	40000	30500	70500	400	305	705	190	50000	450	-20500
450	150	40000	39800	79800	267	265	532	186	67500	350	-12300
400	200	40000	42100	82100	200	211	411	46	80000	250	-2100
350	250	40000	44900	84900	160	180	340	56	87500	150	2600
300	300	40000	52000	92000	133	173	307	142	90000	50	-2000
250	350	40000	68000	108000	114	194	309	320	87500	-50	-20500
200	400	40000	94000	134000	100	235	335	520	80000	-150	-54000
150	450	40000	128000	168000	89	284	373	680	67500	-250	-100500