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Question: A monopolist has its total costs (TC ) of production given inTable 1. The (inverse) demand curve...

A monopolist has its total costs (TC ) of production given in
Table 1. The (inverse) demand curve it faces in the market is
described by this equation: P = a bQ = 2, 000 (28.75)Q.

1(a). Derive the MC and ATC values using the equation MC = T C/Q
and AT C = T C/Q. A monopolist has its total costs (TC ) of
production given in Table 1. The (inverse) demand curve it faces in
the market is described by this equation: P = a bQ = 2, 000
(28.75)Q.

1(b). Draw the MC and ATC curves using the values derived for
1(a). Draw the inverse demand curve and its corresponding MR curve.
Note: for the MR curve, be sure to use the equation learned in
class, MR = a 2bQ.

1(c). What is the price (PM) and quantity (QM) that the
monopolist will choose in order to maximize profit?

1(d). What is their total profit from the price and quantity
combination in 1(c)?

1(e). What is the consumer surplus when they charge the price PM
from 1(c)?

Show transcribed image text Table 1: Total Costs for a Monopolist 800 21 6243.2 0 1 1131.2 22 697.6 2 1409.6 23 7810.4 3 1642.4 4 1836.8 25 L 9800 26 10911.2 2000 6 2139.2 27 12269.6 7 2261.6 28 13702.4 8 2374.4 29 15276.8 9 2484.8 30 17000 10 2600 31 18879.2 11 2727.2 32 20921.6 12 2873.6 33 23134.4 13 3046.4 34 25524.8 14 3252.8 35 28100 15 3500 36 30867.2 37 338336 16 3795.2 38 37006.4 17 41415.6 18 4558.4 39 40392.8 19 5040.8 40 44000 20 5600

Table 1: Total Costs for a Monopolist 800 21 6243.2 0 1 1131.2 22 697.6 2 1409.6 23 7810.4 3 1642.4 4 1836.8 25 L 9800 26 10911.2 2000 6 2139.2 27 12269.6 7 2261.6 28 13702.4 8 2374.4 29 15276.8 9 2484.8 30 17000 10 2600 31 18879.2 11 2727.2 32 20921.6 12 2873.6 33 23134.4 13 3046.4 34 25524.8 14 3252.8 35 28100 15 3500 36 30867.2 37 338336 16 3795.2 38 37006.4 17 41415.6 18 4558.4 39 40392.8 19 5040.8 40 44000 20 5600