In the monopoly market, Microsoft sells Windows for Rs.4000 each and if they wants to buy more units the price of the commodity will be lesser than this and it registers 300 less for each increment . The fixed costs of production are Rs.1000. The total variable costs are Rs.640 for one unit, Rs.740 for two units, Rs.820 for three units, Rs.900 for four units and Rs.1100 for five units. In the form of a table, calculate total revenue, average revenue, marginal revenue, total cost, average cost and marginal cost for each output level (one to five units). What is the profit-maximizing quantity and price for windows? (10 marks)
On one diagram, sketch the total revenue and total cost curves. (5 marks)
On another diagram, sketch the marginal revenue and marginal cost curves. Further, explain the conditions for market equilibrium under the monopoly market. (5 marks)
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In the monopoly market, Microsoft sells Windows for Rs.4000 each and if they wants to buy more units the price of the commodity will be lesser than this and it registers 300 less for each increment . The fixed costs of production are Rs.1000. The total variable costs are Rs.640 for one unit, Rs.740 for two units, Rs.820 for three units, Rs.900 for four units and Rs.1100 for five units. In the form of a table, calculate total revenue, average revenue, marginal revenue, total cost, average cost and marginal cost for each output level (one to five units). What is the profit-maximizing quantity and price for windows? (10 marks)
On one diagram, sketch the total revenue and total cost curves. (5 marks)
On another diagram, sketch the marginal revenue and marginal cost curves. Further, explain the conditions for market equilibrium under the monopoly market. (5 m