2. 0 Quantity 1 2 Polly's Piñatas has a local monopoly in the sale of piñatas. The table below shows the demand for piñatas at various prices. The total cost of production of the various levels of output is also shown. Calculate marginal revenue and marginal cost for the firm. What level of output maximizes profit? What price should the firm charge? 3 4 5 Quantity 0 1 2 3 4 5 Price $15 13 11 9 7 5 Price $15 13 11 9 7 5 Total Revenue Quantity 0 1 2 3 4 LO 5 Total Cost $10 13 17 22 28 35 Marginal Total Revenue Cost $10 13 17 22 28 35 Marginal Cost
2. 0 Quantity 1 2 Polly's Piñatas has a local monopoly in the sale of piñatas. The table below shows the demand for piñatas at various prices. The total cost of production of the various levels of output is also shown. Calculate marginal revenue and marginal cost for the firm. What level of output maximizes profit? What price should the firm charge? 3 4 5 Quantity 0 1 2 3 4 5 Price $15 13 11 9 7 5 Price $15 13 11 9 7 5 Total Revenue Quantity 0 1 2 3 4 LO 5 Total Cost $10 13 17 22 28 35 Marginal Total Revenue Cost $10 13 17 22 28 35 Marginal Cost
Chapter13: Monopoly And Antitrust
Section: Chapter Questions
Problem 5P
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