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Demand schedule and cost data

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1. Suppose a monopolist is faced with the demand schedule and cost data shown below.

P Q AFC AVC

125 0

115 1 100 35

105 2 50 35

95 3 33.33 35

85 4 25 35

75 5 20 35

65 6 16.67 35

55 7 14.29 35

45 8 12.5 35

35 9 11.11 35

25 10 10 35

15 11 9.09 35

a. What is the total fixed cost for this firm?

b. Fill in the missing values of TR, MR, ATC, TC, MC and profit.

c. What are the price and quantity produced and the profit? Verify your answer graphically.

Reference no: EM132278898

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