Answer
a) Please see the table.
b) 16 dollars, 550,000 dollars profit
c) 550,000 dollars
Work Step by Step
a) The table shows the total revenue and the marginal revenue for each level of production.
b) Please see the table.
c) If Johnny were to demand 550,000 dollars, this would decrease the profit to zero. The marginal cost doesn't change, so the recording company would still produce 50,000 CDs.
