Monopoly Problem
Essay by people • January 15, 2012 • Essay • 617 Words (3 Pages) • 1,365 Views
Monopoly Problem
Robert Duvall and Kareem Abdul Jabar jointly patent a method for making Adam Smith bobble head dolls. The plan is for a very limited production run. They investigate the potential market for this unique novelty and find their sales and total cost schedules to be as follows: (The costs include a licensing fee to the estate of Adam Smith)
Sales Unit Price Total Cost
0 200 140
1 180 170
2 160 200
3 140 220
4 120 250
5 100 300
6 80 380
A) Calculate their TR, MR, ATC, MC and profit/loss schedules
sales Unit Price Total Cost TR MR ATC MC P/L
0 200 140
1 180 170 180 180 170 20 10
2 160 200 320 140 100 20 120
3 140 220 420 100 73.33 20 200
4 120 250 480 60 62.5 20 230
5 100 300 500 20 60 20 200
6 80 380 480 -20 63.33 20 100
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