Microeconomics

 

You have been hired by a monopoly to analyze the following production data and prepare a proposal suggesting how to maximize profits.

 Here is what the chart looks like:

                                                                                   Monolopy 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 recommendatioon 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:

1. Remain at current output level

2. Increase output

3. Decrease output

4. Shut down

5. Uncertain-the figures provided can not possibly be correct