Question

The following table shows demand and marginal cost for a monopolist. Calculate marginal revenue (MR) at each quantity. (Enter your response as an integer.) Output (units) (Q) Price per Unit (P) Marginal Revenue Marginal (MR) Cost (MC) 0 10 9 1 2 8 2 3 7 3 4 6 4 5 5 5 A profit-maximizing monopolist will produce units and set a price of $

Answer 1

Page No. Q) formula formula Total Revenue Total Revenue (TR) = (TR) = PxQ MR = AIR AO Output TR MR MC. Price 10 0 o - १ 9 1 2 8 16 2 7 5 3 7 21 24 25 y 5 3 3 4 5 5 produce at th The profit maximization condition under mi monopoly is MR = Mc up to quantity where MRSME Se the foim will upta I quantity of output as up to that point MR X M. 4 unit MR<MC hence loss loss for the At Q = 3 P = $7, the profit is maximized A profit maximizing monopolist will produce units and Set a price of $ 7 company 3 CS Scanned with CamScanner