question 5 (0.125 points) saved\nroxies movie theatre is the only one in town. the table above gives the…

question 5 (0.125 points) saved\nroxies movie theatre is the only one in town. the table above gives the demand schedule for movies. if roxies is a single - price monopoly and the marginal cost of a movie is $6, roxies will charge ______ a movie and will sell ______ movie tickets a week.\n$6; 400\n$12; 200\n$15; 100\n$9; 300

question 5 (0.125 points) saved\nroxies movie theatre is the only one in town. the table above gives the demand schedule for movies. if roxies is a single - price monopoly and the marginal cost of a movie is $6, roxies will charge ______ a movie and will sell ______ movie tickets a week.\n$6; 400\n$12; 200\n$15; 100\n$9; 300

Answer

Explanation:

Step1: Understand Monopoly Profit - Maximization

A single - price monopoly maximizes profit when (MR = MC). The marginal cost (MC=$6).

Step2: Analyze Revenue Changes

  • When price (P = 18), quantity (Q = 0), total revenue (TR=P\times Q=0).
  • When (P = 15), (Q = 100), (TR=15\times100 = 1500). Marginal revenue (MR=\frac{\Delta TR}{\Delta Q}=\frac{1500 - 0}{100-0}=15).
  • When (P = 12), (Q = 200), (TR=12\times200 = 2400). (MR=\frac{2400 - 1500}{200 - 100}=9).
  • When (P = 9), (Q = 300), (TR=9\times300=2700). (MR=\frac{2700 - 2400}{300 - 200}=3).
  • When (P = 6), (Q = 400), (TR=6\times400 = 2400). (MR=\frac{2400 - 2700}{400 - 300}=- 3).

We want to find the point where (MR) is closest to (MC) (since (MR) is discrete in this table). When (Q = 300), (MR = 3) (the closest value to (MC = 6) before (MR<MC)). And the price corresponding to (Q = 300) is (P = 9).

Answer:

($9;300)