Answer Happy

MONOPOLY SHORT RUN COST STRUCTURE & REVENUE STRUCTURE 16. Complete the "monopoly" table immediately below by calculating all the values. (It is worth spending 30 minutes to learn some Microsoft Excel or Google Sheets skills to complete this assignment. Get some help.) 17. What is the rule for determining the daily output (production level) that will maximize short run profits? 18. Identify the daily output that the firm would produce so as to maximize profit. Report daily output, price, marginal revenue, marginal cost, average total cost, and profit at that daily output. Explain. 19. What will the long run equilibrium be given this monopoly cost structure? Report daily output, price, marginal revenue, marginal cost, average total cost, and profit at that daily output. Explain. 20. Provide two graphs: i) output on the x-axis and on the y-axis average variable costs, average total costs, price (the demand curve), and marginal revenue. Output (Suits Cleaned) 0 1 2 3 4 5 6 7 8 Price per Suit Cleaned ($) 8.00 7.50 7.00 6.50 6.00 5.50 5.00 4.50 4.00 Total Revenue ($) Total Total Marginal Costs Profits Revenues ($) ($) ($) 3.00 6.00 8.50 10.50 11.50 13.50 16.00 19.00 24.00 (3.00) XXX Marginal Costs ($) XXX