Monopoly Profit Maximization

Monopoly Profit Maximization

You have been hired by a monopoly to analyze the following production data and prepare a proposal suggesting how to maximize profits.

The data provided by the company is incomplete. You are to complete columns TR and ATC in the chart and make a short-run recommendation, using one of the recommendation actions from the list below. Remember that your goal is to maximize profits. Prepare a one page paper that includes your solutions to the table, your recommendation action, and justification supporting your recommendation.

Recommendation actions:

1.     Remain at current output level.

2.     Increase output

3.     Decrease output

4.     Shut down

5.     Uncertain-the figures provided cannot possibly be correct.