Solution) Chapter 14: Problems and Applications #3.3, pg. 500. Ed Scahill has acquired a monopoly on the produ

Question: Chapter 14: Problems and Applications #3.3, pg. 500.

Ed Scahill has acquired a monopoly on the production of baseballs (don't ask how), and faces the demand and cost situation given in the following table:

P	Q	Revenue	MR	TC	MC
20	15000			330000
19	20000			365000
18	25000			405000
17	30000			450000
16	35000			500000
15	40000			555000

a. Fill in the remaining values in the table.

b. If Ed wants to maximize profits, what price should he charge and how many baseballs should he sell? How much profit will he make?

c. Suppose the government imposes a tax of $50,000 per week on baseball production. Now what price should Ed charge, how many baseballs should he sell, and what will his profits be?

Price: $2.99

Solution: The solution consists of 2 pages
Deliverables: Word Document