The demand schedule of Karachi electric (KE) (known as monopolist) is given as below. You needto find the missing values using TR-TC & MR-MC approaches to analyze its cost of productionand profit maximizing point.Output Price Total Cost Total Revenue MC MR0 Rs.24 Rs.101 21 142 18 203 15 284 12 385 9 50a. Find the missing values of Total Revenue columnb. Find the output level that maximizes the firm's profit, using TR-TC approachc. What price should the firm set to achieve maximum profit?d. Complete the final two columns to verify that the same conclusions are reached using theMR = MC rule.e. Compare both the results and comment on the business and its position The demand schedule of Karachi electric (KE) (known as monopolist) is given as below. You needto find the missing values using TR-TC & MR-MC approaches to analyze its cost of productionand profit maximizing point.OutputPriceTotal CostTotal RevenueMCMRRs.101420Rs.24121181528123850a. Find the missing values of Total Revenue columnb. Find the output level that maximizes the firm's profit, using TR-TC approachc. What price should the firm set to achieve maximum profit?d. Complete the final two columns to verify that the same conclusions are reached using theMR = MC rule.e. Compare both the results and comment on the business and its position.234 5

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Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Monopoly

Section: Chapter Questions

Problem 1PA

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The demand schedule of Karachi electric (KE) (known as monopolist) is given as below. You need
to find the missing values using TR-TC & MR-MC approaches to analyze its cost of production
and profit maximizing point.
Output Price Total Cost Total Revenue MC MR
0 Rs.24 Rs.10
1 21 14
2 18 20
3 15 28
4 12 38
5 9 50
a. Find the missing values of Total Revenue column
b. Find the output level that maximizes the firm's profit, using TR-TC approach
c. What price should the firm set to achieve maximum profit?
d. Complete the final two columns to verify that the same conclusions are reached using the
MR = MC rule.
e. Compare both the results and comment on the business and its position

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