Answer to Question #223185 in Microeconomics for sindly

Question

In Thailand, a firm named SunFly is planning to monopolize its streaming services. The firm has made a ฿3 million investment in their streaming offerings. In addition, the firm has faced a marginal cost of ฿10 for each streaming service it offers. The table below displays SunFly's monthly streaming service pricing as well as the quantity demanded for each pricing. 

Price (฿):

1. ฿ 130
2. ฿ 120
3. ฿ 110
4. ฿ 100
5. ฿ 90
6. ฿ 80
7. ฿ 70
8. ฿ 60
9. ฿ 50

Quantity demanded:

1. 10,000
2. 20,000
3. 30,000
4. 40,000
5. 50,000
6. 60,000
7. 70,000
8. 80,000
9. 90,000

a.) Calculate total revenue, marginal revenue, total cost, and profit using the information given. What amount should a monopolistic business charge in order to maximize profits?

b.) Illustrate (draw) a graph for the marginal-revenue, marginal-cost, and demand curves based on your solution in (a). The marginal revenue and marginal-cost curves intersect at what price and quantity?

Answer 1

130

(b)