Answer to Question #275166 in Economics for Shed

Question

Monopolistically firm sells balls. What will be the profit?

Price Data quantity Data output Total cost

$11 6 6 $48

$10 7 7 $52

$9 8 8 $57

$8 9 9 $63

$7 10 10 $70

Answer 1

P Q TR MR TC MC

$11 6 $66 - $48 -

$10 7 $70 4 $52 4

$9 8 $72 2 $57 5

$8 9 $72 0 $63 6

$7 10 $70 -2 $70 7

The profit-maximizing output occurs when MR = MC = $4, so Q = 7, P = $10, TP = TR - TC = 70 - 52 = $18.