Question
5 (Key Question) Suppose a pure monopolist is faced with the demand schedule shown below and the same cost data as the competitive producer discussed
5 (Key Question) Suppose a pure monopolist is faced with the demand schedule shown below and the same cost data as the competitive producer discussed in question 4 at the end of Chapter 23. Calculate the missing total- and marginal-revenue amounts, and determine the profit-maximizing price and output for this monopolist. What is the monopolist's profit? Verify your answer graphically and by comparing total revenue and total cost. Price Quantity demanded total revenue Marginal revenue $115 100 83 71 63 55 48 42 37 33 29 0 1 2 3 4 5 6 7 8 9 10 $____ $____ $____ $____ $____ $____ $____ $____ $____ $____ $____ $____ $____ $____ $____ $____ $____ $____ $____ $____ $____ Total revenue data, top to bottom, in dollars: 0: 100; 166; 213; 252; 275; 288; 294; 296; 297; 290. Marginal revenue data, top to bottom, in dollars: 100; 66; 47; 39; 23; 13; 6;
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