KING-WANG-JJANG POWER, the monopoly exporter of Korean food to Maine, faces the following demand schedule for its chocolate-covered ginseng capsules (sales in pounds per week): 15 30 45 60 90 P: Price ($) X: Quantity demanded o 75 Go so 40 105 120 2013 10: 80 70 60 50 30 20 0 a) Calculate marginal revenue over each interval in the schedule. 10 b) If marginal cost(incl. shipping cost) is constant at $25 and fixed cost is $800, what is the profit- maximizing level of output? Chocolate c) What is the level of profit? Explain your answer using marginal cost and marginal revenue. d) Repeat the exercise for MC = 50.
