Question 1

Suppose a profit-maximizing monopolist is producing 800 units of output and is charging a price of ₹40 per unit.\ Based on the above data, answer the given subquestions. If the price elasticity of demand for the product is –2, find the marginal cost (in ₹) of the last unit produced \_\_\_\_\_\_\_\_\_\_\_\_ Suppose a profit-maximizing monopolist is producing 800 units of output and is charging a price of ₹40 per unit.\ Based on the above data, answer the given subquestions. What is the firm’s percentage markup of price over marginal cost (as a % of the price)? \_\_\_\_\_\_\_\_\_\_\_ Suppose a profit-maximizing monopolist is producing 800 units of output and is charging a price of ₹40 per unit.\ Based on the above data, answer the given subquestions. Suppose that the average cost of the last unit produced is ₹15 and the firm’s fixed cost is ₹2000. Find the firm’s profit (in ₹)\_\_\_\_\_\_\_\_\_\_\_