Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the following Quantity, Price, and Total Cost schedule for a single price monopolist Price per unit Quantity Total Revenue Marginal Revenue Total Cost Marginal

Consider the following Quantity, Price, and Total Cost schedule for a single price monopolist

Price per unit Quantity Total Revenue Marginal Revenue Total Cost Marginal Cost Average Total Cost
10 0 0 0 100 0 0
8 100 800 8 300 2 3.00
6 200 1200 4 700 4 3.50
4 300 1200 0 1300 6 4.33
2 400 800 -4 2100 8 5.25
0 500 0 -8 3100 10 6.20

  1. Complete the Total and Marginal Revenue columns.
  2. What quantity maximizes total revenue?
  3. Complete the rest of the table.
  4. For a single price monopolist, what is the profit maximizing output?
  5. For a single price monopolist, what is the profit maximizing price per unit?
  6. At the single price monopolist's profit maximizing output and price, what is the profit per unit?
  7. At the single price monopolist's profit maximizing output and price, what is the total profit?
  8. Show the monopolist graphically; assume standard "U" shaped cost curves instead of the specific costs from the table.
  9. At what price is the price elasticity of demand equal to one? (You do not need to actually calculate elasticity)

The table is completed; so, #1 is answered. Please review for correctness. Please provide question # to answers given for 2-9 so it's easy to distinguish. Also, please provide clarity how graph is generated for #8. I'm told to use Excel to graph data. I'm a music major and this is foreign to me. Thanks so much :)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Micromotives And Macrobehavior

Authors: Thomas Schelling

1st Edition

0393329461, 9780393329469

More Books

Students also viewed these Economics questions

Question

Get married, do not wait for me

Answered: 1 week ago

Question

Do not pay him, wait until I come

Answered: 1 week ago

Question

Do not get married, wait until I come, etc.

Answered: 1 week ago