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250 225 200- MC ATC 175 150 -- Price (dollars per round of golf) 125-+- 100- 75 50- D 25 EMR 20 30 40 50
250 225 200- MC ATC 175 150 -- Price (dollars per round of golf) 125-+- 100- 75 50- D 25 EMR 20 30 40 50 60 70 80 90 100 Quantity (rounds of golf per week) The diagram above shows the demand curve, marginal revenue curve, and cost curves for a monopolist that owns the only golf courses on Eagle Island. The monopolist's product is 18-hole golf games. A) What is the profit-maximizing price and output (number of rounds of golf per week) for the monopolist on Eagle Island? (1 mark) B) What is the average total cost per round of golf at the profit-maximizing level of output? (1 Mark) C) Calculate the profit, in dollars per week, to this monopolist. (1 mark) D) If this were a competitive market, what would the quantity and price be? (2 mark)
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