1. Assume a monopoly has the following demand schedule:
Price (P) Quantity (Q)
$20 200
15 300
10 500
5 700
(a) Calculate total revenue (TR) at each P and Q combination.
(b) Calculate marginal revenue per unit for each decrease in price.
(c) For the change in price from $20 to $15, calculate the interval elasticity of demand. Is demand elastic or inelastic?
(d) For the change in price from $20 to $15, obtain the Lerner index.
1. Assume a monopoly has the following demand schedule:
Price (P) Quantity (Q)
$20 200
15 300
10 500
5 700
(a) Calculate total revenue (TR) at each P and Q combination.
(b) Calculate marginal revenue per unit for each decrease in price.
(c) For the change in price from $20 to $15, calculate the interval elasticity of demand. Is demand elastic or inelastic?
(d) For the change in price from $20 to $15, obtain the Lerner index.
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Related questions
Use the following demand schedule for a monopolist to calculate total revenue and marginal revenue. For each price, indicate whether the demand is elastic, unit elastistic or inelastic. Using the data from the demand schedule,graph the demand curve, the marginal revenue curve and the total revenue curve. Identify the elastic, unit elastic and inelastic segments along the demand curve.
| Price(P) | Quantitiy demanded (Q) | Total Renenue (TR) | Marginal Revenue (MR) | Price elasticity of demand  |
| 5 | 0 | |||
| 4.5 | 1 | |||
| 4 | 2 | |||
| 3.5 | 3 | |||
| 3 | 4 | |||
| 2.5 | 5 | |||
| 2 | 6 | |||
| 1.5 | 7 | |||
| 1 | 8 | |||
| 0.5 | 9 | |||
| 0 | 10 |
Use the following demand schedule for a monopolist to calculate total revenue and marginal revenue. For each price, indicate whether demand is elastic, unit elastic, or inelastic. Using the data from the demand schedule, graph the demand curve, the marginal revenue curve, and the total revenue curve. Identify the elastic, unit elastic, and inelastic segments along the demand curve.
| Price (P) | Quantity Demanded (Q) | Total Revenue | Marginal Revenue | Price elasticity of demand |
| $5.00 | 0 | |||
| 4.50 | 1 | |||
| 4.00 | 2 | |||
| 3.50 | 3 | |||
| 3.00 | 4 | |||
| 2.50 | 5 | |||
| 2.00 | 6 | |||
| 1.50 | 7 | |||
| 1.00 | 8 | |||
| 0.50 | 9 | |||
| 0 | 10 |
