The table below presents the demand schedule and marginal costs facing a monopolist producer.
Q
P($)
TR($)
MR($)
MC($)
0
8
-
1
7
1
2
6
2
3
5
3
4
4
4
5
3
5
6
2
6
7
1
7
8
0
8
Instructions: Round your answers to the nearest whole number and include a negative sign if appropriate. Leave no cells blank. Enter 0 if appropriate.
a. Fill in the total revenue and marginal revenue columns.
b. What is the profit-maximizing level of output?
c. What price will the monopolist charge for the quantity in part (b)?
The table below presents the demand schedule and marginal costs facing a monopolist producer.
| Q | P($) | TR($) | MR($) | MC($) |
| 0 | 8 | - | ||
| 1 | 7 | 1 | ||
| 2 | 6 | 2 | ||
| 3 | 5 | 3 | ||
| 4 | 4 | 4 | ||
| 5 | 3 | 5 | ||
| 6 | 2 | 6 | ||
| 7 | 1 | 7 | ||
| 8 | 0 | 8 |
Instructions: Round your answers to the nearest whole number and include a negative sign if appropriate. Leave no cells blank. Enter 0 if appropriate.
a. Fill in the total revenue and marginal revenue columns.
b. What is the profit-maximizing level of output?
c. What price will the monopolist charge for the quantity in part (b)?
Related textbook solutions
Related questions
Paulina sells beef in a competitive market where the price is $5 per pound. Her total revenue and total costs are given in the table below.
|
Quantity of beef (lbs.) |
Total revenue ($) |
Total cost ($) |
Profit ($) |
Marginal revenue ($) |
Marginal cost ($) |
Marginal profit ($) |
| 0 | 0 | 4 | ||||
| 1 | 5 | 6 | ||||
| 2 | 10 | 9 | ||||
| 3 | 15 | 14 | ||||
| 4 | 20 | 22 |
Instructions: Round your answers to the nearest dollar and include a negative sign if appropriate.
a. Fill out the table.
b. At what quantity does marginal revenue equal marginal cost?
_____________pounds.
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 |
