What price and quantity combination did you find maximizes the monopolist's profit using Marginal Analysis?
Demand and Cost facing Monopolist
| Price | Quantity | Total Revenue | Marginal Revenue | Total Variable Cost | Marginal Cost | Total Cost | Profit |
|---|---|---|---|---|---|---|---|
| $10 | 10 | $30 | |||||
| $9 | 20 | $50 | |||||
| $8 | 30 | $60 | |||||
| $7 | 40 | $80 | |||||
| $6 | 50 | $110 | |||||
| $5 | 60 | $150 | |||||
| $4 | 70 | $210 | |||||
| $3 | 80 | $290 | |||||
| $2 | 90 | $390 |
We learned that in a competitive
Given the monopolist's choice of price and quantity that you found, what is the Marginal Cost at this quantity? Is it close to the price, or clearly less than price? Do you think this monopolist is "underproducing" and "overcharging" compared to a competitive market? Explain.
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