The market demand curve for commodity and the total cost for a monopoly firm producing the commodity is given by the schedule below:

Use the information to calculate the following:
(a) The MR and MC schedules,
The quantities for which the MR and MC are equal,
(c) The equilibrium quantity of output and the equilibirum price of the commodity,
(d) The total revenue, total cost and total profit in equilibrium.

Explanation

(a)
(b) At 6 units, MR=MC
(c) Equilibrium is achieved when MR=MC. So, Equilibrium Quantity =6 units and Equilibrium Price = rupee 19.
(d) Total Revenue (TR) = rupee 114
Total Cost (TC) = rupee 109
Total profit = TR-TC=114-109= rupee 5