Explore BrainMass

# Finding optimal output level

Not what you're looking for? Search our solutions OR ask your own Custom question.

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

Answer the next question on the basis of the following information for a firm operating in an imperfectly competitive market:

Output------------Price------------Total Cost

----0--------------\$500---------------\$250
----1--------------\$300---------------\$260
----2--------------\$250---------------\$290
----3--------------\$200---------------\$350
----4--------------\$150---------------\$480
----5--------------\$100---------------\$700

How many units would the above profit-maximizing monopolist produce? Explain

https://brainmass.com/economics/price-levels/finding-optimal-output-level-355706

#### Solution Preview

Please refer attached file for better clarity of table.

Solution:

Output Q Price, P Total Revenue Total Cost Marginal Revenue Marginal Cost Profit
TR=P*Q TC MR* MC** TR-TC
0 500 0 250 -250
1 300 ...

#### Solution Summary

Solution describes the steps to find optimal output level and associated profit.

\$2.49