Question: Problem-solving question: Use the following data for a pure monopoly to calculate the firm’s: (a) total revenue, marginal revenue, marginal costs, and average total cost;

(b) its profit-maximizing output level and produce price;

(c) its profit.

(d) Use the price-cost formula to determine whether or not the firm’s operations are productively-efficient.

(e) Use the price-cost formula to determine whether or not the firm’s operations are allocatively efficient. The column on the right is the "total cost" schedule -- not the "marginal revenue" schedule

Q (P = AR) TR MR TC MC ATC

0 $140 $125

1 139 175

2 138 260

3 137 330

4 136 420

5 135 541

6 134 670

7 133 800

8 132 950

Price: $2.99

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Deliverable: Word Document