Suppose a pure monopolist is faced with the demand schedule shown below and the same cost data as the competitive producer discussed in question 4 at the end of Chapter 9. Calculate the missing total-revenue and marginal revenue amounts, and determine the profifit-maximizing price and profit-earning output for this monopolist. What is the monopolist’s profit? Verify your answer graphically and by comparing total revenue and total cost. QuantityTotalMarginalPriceDemandedRevenueRevenue$115100832713634555486427373329co o o 4. KEY QUESTION Assume the following cost data are for apurely competitive producer: LO3TotalAverageAverageAverageMarginalProduct Fixed Cost Variable Cost Total CostCost$45$60.00$45.00$105.0040230.0042.5072.5035320.0040.0060.0030415.0037.5052.5035512.0037.0049.0040610.0037.5047.504578.5738.5747.145587.5040.6348.136596.6743.3350.0075106.0046.5052.50

Monopolist: A monopolist is a price maker and he can determine the price of the product and that he…

Answered: Quantity Total Marginal Price Demanded…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose a pure monopolist is faced with the demand schedule shown below and the same cost data as the competitive producer discussed in question 4 at the end of Chapter 9. Calculate the missing total-revenue and marginal revenue amounts, and determine the profifit-maximizing price and profit-earning output for this monopolist. What is the monopolist’s profit? Verify your answer graphically and by comparing total revenue and total cost.

Quantity
Total
Marginal
Price
Demanded
Revenue
Revenue
$115
100
83
2
71
3
63
4
55
5
48
6
42
7
37
33
29
co o o

4. KEY QUESTION Assume the following cost data are for a
purely competitive producer: LO3
Total
Average
Average
Average
Marginal
Product Fixed Cost Variable Cost Total Cost
Cost
$45
$60.00
$45.00
$105.00
40
2
30.00
42.50
72.50
35
3
20.00
40.00
60.00
30
4
15.00
37.50
52.50
35
5
12.00
37.00
49.00
40
6
10.00
37.50
47.50
45
7
8.57
38.57
47.14
55
8
7.50
40.63
48.13
65
9
6.67
43.33
50.00
75
10
6.00
46.50
52.50

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