a. Draw a graph of the market demand curve and Minnie’s marginal revenue curve.
b. Why is Minnie’s marginal revenue less than the price?
Minnie’s Mineral Springs, a single-price monopoly, faces the market demand schedule in the table.
PriceQuantity demanded
(dollars per bottle) (bottles per hour)
10 ………………………………….0
8 ………………………………….1
6 ………………………………….2
4 ………………………………….3
2 ………………………………….4
0 ………………………………….5