Purchase Solution

Finding optimal output level

Not what you're looking for?

Ask Custom Question

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

Purchase this Solution

Solution Summary

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

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 provided by:
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
Recent Feedback
  • "Thank you"
  • "Really great step by step solution"
  • "I had tried another service before Brain Mass and they pale in comparison. This was perfect."
  • "Thanks Again! This is totally a great service!"
  • "Thank you so much for your help!"
Purchase this Solution


Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.