Monopoly Analysis. Monopoly Analysis. Monopoly Analysis.
You have been hired by a monopoly to analyze the following production data and prepare a proposal suggesting how to maximize profits.
Monopoly Firm
| |||||||
Price
|
MR
|
TR
|
Q
|
TC
|
MC
|
ATC
|
AVC
|
6.4
|
3.1
|
1000
|
6400
|
3
|
3.24
| ||
The data provided by the company is incomplete. You are to complete columns TR and ATC in the chart and make a short-run recommendation, using one of the recommendation actions from the list below. Remember that your goal is to maximize profits. Prepare a one page paper that includes your solutions to the table, your recommendation action, and justification supporting your recommendation.
Recommendation actions:
- Remain at current output level.
- Increase output
- Decrease output
- Shut down
- Uncertain-the figures provided cannot possibly be correct
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