Scenario 15-4 suppose a monopolist has a demand curve that can be expressed as p=90-q. the monopolist's marginal revenue curve can be expressed as mr=90-2q. the monopolist has constant marginal costs and average total costs of $10. refer to scenario 15-4. the profit-maximizing monopolist will produce an output level of

Xinhong company is considering replacing one of its manufacturing machines. the machine has a book value of $39,000 and a remaining useful life of 5 years, at which time its salvage value will be zero. it has a current market value of $49,000. variable manufacturing costs are $33,300 per year for this machine. information on two alternative replacement machines follows. alternative a alternative b cost $ 115,000 $ 117,000 variable manufacturing costs per year 22,900 10,100 1. calculate the total change in net income if alternative a and b is adopted. 2. should xinhong keep or replace its manufacturing machine