4. Use the following demand schedule for a pure monopolist to calculate total revenue and marginal revenue at each quantity. Plot the monopolist’s demand curve and marginal-revenue curve, and explain the relationships between them. Explain why the marginal revenue of the fourth unit of output is $3.50, even though its price is $5. What generalization can you make as to the relationship between the monopolist’s demand and its marginal revenue? Suppose the marginal cost of successive units of output was zero. What output would the singleprice monopolist produce, and what price would it charge? LO2

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Quantity Price (P) Demanded (Q) Price (P) Quantity Demanded (Q) $7.00 0 $4.50 5 6.50 1 4.00 6 6.00 2 3.50 7 5.50 3 3.00 8 5.00 4 2.50 9