Q Monopoly Problem Set Use the following information to answer questions 1 through 4: The table below shows data for the production of Apples for an individual firm operating as a monopoly. Quantity of Apples Price Total Costs 0 600 3000 10 550 3750 20 500 4750 30 450 6000 40 400 8500 50 350 12500 60 300 20000 70 250 32000 80 200 43500 1. Given this data, complete the table: Quantity of Apples Total Revenue (TR) Profit Marginal Revenue (MR) Marginal Costs (MC) 0 - - 10 20 30 40 50 2. At what quantity are marginal revenues equal to marginal costs? ? 3. What is the profit maximizing quantity? NOTE: If there are two quantities with the same level of profits, pick the larger of the two quantities! 4. What is the profit maximizing price? NOTE: If there are two quantities with the same level of profits, pick the larger of the two quantities! ? Use the following information to answer questions 5 through 9: The graph below shows the demand curve and cost data for a firm operating as a monopolist. 5. The blue line shows: a. Demand Curve b. Marginal Costs c. Marginal Revenue 6. The red line shows: a. Demand Curve b. Marginal Costs c. Marginal Revenue ? 7. The black line shows: a. Demand Curve b. Marginal Costs c. Marginal Revenue 8. The profit maximizing quantity for this monopolist is: a. 4.25 b. 6.25 c. 5.00 d. 9.89 9. What price will the monopolist set in order to maximize profits (or minimize losses)? a. 15.88 b. 11.88 c. 10.05 d. 09.05 ? 10. The graph below shows demand curve and cost data for a firm operating as a monopolist. In addition, the green line shows average total costs (ATC). At the profit maximizing (loss minimizing) quantity, the monopolist is experiencing a. Losses b. Break-even point c. Profits ? Use the following information to answer questions 11 through 14: The graph below shows demand curve and cost data for a firm operating as a monopolist. In addition, the green line shows average total costs (ATC). 11. Suppose that the government decided to regulate this monopolist by requiring the firm to produce at the point where the Marginal Cost curve intersects with the demand curve. (similar to perfect competition where MR = D). What is the quantity produced? a. 4.84 b. 6.84 c. 2.84 12. Suppose that the government decided to regulate this monopolist by requiring the firm to produce at the point where the Marginal Cost curve intersects with the demand curve (similar to perfect competition where MR = D). What is the price under this marginal cost pricing? a. 12.58 b. 14.58 c. 10.58