A monopolist serves a market with five potential buyers, each of whom would buy at most onepiece of the monopolist's good. Anna would be willing to pay up to£80 for it, Bob up to £90, Chloe up to £100, Dave up to £110 and Elizabeth up to £120. Themonopolist's variable cost function is given in below table.QuantityVariable Costs13.4.4090150220300PriceMarg.Revenuea) Indicate in the table which price the monopolist would want to charge for each givenquantity.b) Find the marginal revenue for each quantity.c) Find the monopolist's profit maximising price under the assumption that he wants toproduce anything at all.d) How large can the monopolist's fixed costs be such that he still wants to start producing at1.D Focus9°C Sun

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A monopolist serves a market with five potential buyers, each of whom would buy at most one piece of the monopolist's good. Anna would be willing to pay up to £80 for it, Bob up to £90, Chloe up to £100, Dave up to £110 and Elizabeth up to £120. The monopolist's variable cost function is given in below table. Quantity Variable Costs Price 1 2 3 4. 40 90 150 220 300 Marg. Revenue a) Indicate in the table which price the monopolist would want to charge for each given quantity. b) Find the marginal revenue for each quantity. c) Find the monopolist's profit maximising price under the assumption that he wants to produce anything at all.

A monopolist serves a market with five potential buyers, each of whom would buy at most one piece of the monopolist's good. Anna would be willing to pay up to £80 for it, Bob up to £90, Chloe up to £100, Dave up to £110 and Elizabeth up to £120. The monopolist's variable cost function is given in below table. Quantity Variable Costs Price 1 2 3 4. 40 90 150 220 300 Marg. Revenue a) Indicate in the table which price the monopolist would want to charge for each given quantity. b) Find the marginal revenue for each quantity. c) Find the monopolist's profit maximising price under the assumption that he wants to produce anything at all.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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