1 5 You are a monopolist facing the following demand schedule You produce a good at a constant marginal cost of $4 per unit Quantity Price 1 2 $14 3 $12 $10 4 $8 a Calculate the marginal revenue for each row (assume revenue is zero when quantity is zero) b What is the profit maximizing quantity Try...

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1. 5. You are a monopolist facing the following demand schedule. You produce a good at a...

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1. 5. You are a monopolist facing the following demand schedule. You produce a good at a constant marginal cost of $4 per unit.

Quantity Price 1

$14 3

$12

$10 4

a. Calculate the marginal revenue for each row (assume revenue is zero when quantity is zero).

b. What is the profit-maximizing quantity? Try to answer the question without actually calculating profit.

c. Assuming a fixed cost of $10 to operate, what is the profit?

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Microeconomics, 2/e

ISBN: 253021

2nd Edition

Authors: Acemoglu, Daron & Laibson, David & List, John

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Question Posted: Nov 18, 2024 03:00 AM

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1. 5. You are a monopolist facing the following demand schedule. You produce a good at a...

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Microeconomics, 2/e

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