Use the following data for a pure monopoly to calculate the firm's: (a) total revenue, marginal revenue, marginal costs, and average total cost; (b) its profit-maximizing output level and produce price; (c) its profit. (d) Use the price-cost formula to determine whether or not the firm's operations are productively-efficient. (e) Use the price-cost formula to determine whether or not the firm's operations are allocatively efficient.
Q (P = AR) TR MR TC MC ATC
0 $120 $100
1 119 200
2 118 280
3 117 340
4 116 380
5 115 400
6 114 460
7 113 560
8 112 665
Total Revenue is the total amount the seller receives from the sale of a product in a particular time period. TR= P x Q