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Consider the Following Table, Which Represents Demand and Cost Conditions

Question 39

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Consider the following table, which represents demand and cost conditions for a monopoly firm.
(a) Fill in the missing values.
(b) What output level should the firm produce? Explain.  Quantity  Price  Total  Revenue  Marginal  Revenue  Total  Cost  Marginal  Cost  Average  Total  Cost  Profit 0$50$−60145$32405335114301352521620397154581060\begin{array} { | c | c | c | c | c | c | c | c | } \hline \text { Quantity } & \text { Price } & \begin{array} { c } \text { Total } \\\text { Revenue }\end{array} & \begin{array} { c } \text { Marginal } \\\text { Revenue }\end{array} & \begin{array} { c } \text { Total } \\\text { Cost }\end{array} & \begin{array} { c } \text { Marginal } \\\text { Cost }\end{array} & \begin{array} { c } \text { Average } \\\text { Total } \\\text { Cost }\end{array} & \text { Profit } \\\hline 0 & \$ 50 & & & & & & \$ - 60 \\\hline 1 & 45 & & & & \$ 3 & & \\\hline 2 & 40 & & & & 5 & & \\\hline 3 & 35 & & & & 11 & & \\\hline 4 & 30 & & & & 13 & & \\\hline 5 & 25 & & & & 21 & & \\\hline 6 & 20 & & & & 39 & & \\\hline 7 & 15 & & & & 45 & & \\\hline 8 & 10 & & & & 60 & & \\\hline\end{array} (NOTE: Marginal values should be interpreted as values between levels of output.)

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(a) The completed table:
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