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:
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.
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