The following table shows the demand curve facing a monopolist who produces at a constant marginal cost of $10. Note that the demand curve is discrete, so only quantities isted in the table are feasible.

Essentials of Economics (MindTap Course List)
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ISBN:9781337091992
Author:N. Gregory Mankiw
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Chapter14: Monopoly
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6. The following table shows the demand curve facing a monopolist who produces at a
constant marginal cost of $10. Note that the demand curve is discrete, so only quantities
listed in the table are feasible.
Price
18
6
14
12086420
Quantity
0
4
CONDH500+
12
16
20
24
28
32
36
a. Calculate the firm's marginal revenue.
b.
Calculate the firm's profit-maximizing quantity, price, and profit.
c. Calculate the equilibrium price and quantity that would prevail in a competitive
market.
Transcribed Image Text:6. The following table shows the demand curve facing a monopolist who produces at a constant marginal cost of $10. Note that the demand curve is discrete, so only quantities listed in the table are feasible. Price 18 6 14 12086420 Quantity 0 4 CONDH500+ 12 16 20 24 28 32 36 a. Calculate the firm's marginal revenue. b. Calculate the firm's profit-maximizing quantity, price, and profit. c. Calculate the equilibrium price and quantity that would prevail in a competitive market.
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