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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 |
- Complete the Total and Marginal Revenue columns.
- What quantity maximizes total revenue?
- Complete the rest of the table.
- For a single price monopolist, what is the profit maximizing output?
- For a single price monopolist, what is the profit maximizing price per unit?
- At the single price monopolist's profit maximizing output and price, what is the profit per unit?
- At the single price monopolist's profit maximizing output and price, what is the total profit?
- Show the monopolist graphically; assume standard "U" shaped cost curves instead of the specific costs from the table.
- 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 :)
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