Econ 211
Monopoly Advisor Question
You are a self-employed profit-maximizing consultant specializing in monopolies. Five firms are currently seeking your advice, and although the information they have supplied to you is incomplete, your expert knowledge allows you to go back and make a definite recommendation in each case. Select one of the following recommendations for each firm in the short run.
1. Remain at the current output
level.
2. Increase output
3. Reduce output
4. Shut down
5. Go back and recalculate your figures because the ones supplied
can't possibly be correct.
| Firm | P | MR | TR | Q | TC | MC | ATC | AVC | Decision |
| A | 3.90 | 3.00 | 2000 | 7400 | 2.90 | 3.24 | |||
| B | 5.90 | 10,000 | 5.90 | 4.74 | 4.24 | ||||
| C | 9.00 | 44,000 | 4000 | 9.00 | 11.90 | 10.74 | |||
| D | 35.90 | 37.90 | 5000 | 37.90 | 35.90 | ||||
| E | 35.00 | 26.30 | 1000 | 44,600 | 26.30 | 36.94 |
Answers