Using the same reasoning as in the previous question we know
that MC must be over $12 but no more than $14.
Q
P
TR
MR
1
20
20
20
2
19
38
18
3
18
54
16
4
17
68
14
5
16
80
12
6
15
90
10
7
14
98
8
8
13
104
6
17. Suppose at the next sporting event, a few weeks later, we
observe Lane (still with the same monopoly on brick oven baked
goat cheese and avocado pizzas) selling her pizzas for $17 each.
If nothing has changed about the demand data we know then that
her new marginal cost for each pizza must be:
over $6 but no more than $8. If this were the case she would have sold 8 pizzas at $13 each.
over $8 but no more than $10. If this were the case she would have sold 6 pizzas at $15 each.
over $10 but no more than $12. If this were the case she would have sold 5 pizzas at $16 each.
over $12 but no more than $14.
over $14 but no more than $16. If this were the case she would have sold 3 pizzas at $18 each,
but MC could have been as high as $16 and this would be true too.