Below is a table that represents price, output, cost, revenue and profit data for a monopoly.
Below is a table that represents price, output, cost, revenue and profit data for a monopoly.
| Price | Q | TR | MR | MC | TC | Profit |
| $290 | 0 | — | — | -$1,000 | ||
| $280 | 1 | $100 | ||||
| $270 | 2 | $1,180 | ||||
| $260 | 3 | $60 | ||||
| $250 | 4 | |||||
| $240 | 5 | $60 | ||||
| $230 | 6 | $1,420 | ||||
| $220 | 7 | $1,540 | ||||
| $210 | 8 | |||||
| $200 | 9 | $1,980 |
(a) Fill in the missing numbers for Firm B. Note: there are no numbers for MR and MC when Q=0. When output level is 4, the Average Total Cost is $320. When output level is equal to 8 the Total Variable Cost is equal to $700.
(b) At which unit of output does this Firm first start to experience Diminishing Marginal Returns (also know as Decreasing Marginal Returns). Explain your answer.
(c) Determine the TFC for Firm B. Explain how you got your answer.
(d) If this firm is to produce in the Short Run, then determine the output where this firm maximizes its profits or minimizes its loss. Using MC and MR, explain your answer.
(e) ) If this firm is to produce in the Short Run, then determine its best profit number.
(f) If this firm shuts down in the Short Run, what is this firm’s profit number?
(g) Will this firm produce or shut down in the short run? Please explain your answer.
(h) What will this firm do in the long run: stay or leave? Please explain your answer.
