The firm will encounter no fixed costs

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The firm will encounter no fixed costs, and all revenue is after taxes. As your firm has been granted an exclusive contract, your pricing and output decisions will be those of a monopolist. Tasks: 1. Using the data above, calculate the output the firm will provide. 2.Determine the price at this output level. 3.Complete the Microsoft Excel Template given below using the data in the problem. 4 .Check whether your data is consistent with your calculations in question 1. Why or why not? 5.Now assume that the state decides to give as many contracts as it can for the same activity, so your firm is now operating in a perfectly competitive market. How will your price and output decisions change? Explain the differences and why these changes happened.

Reference no: EM131194482

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