Question
Demand: Quantity 1 2 3 4 5 6 7 8 9 10 Price 10 9 8 7 6 5 4 3 2 1 Marginal Revenue
Demand: | Quantity | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| Price | 10 | 9 | 8 | 7 | 6 | 5 | 4 | 3 | 2 | 1 |
| Marginal Revenue | 10 | 8 | 6 | 4 | 2 | 0 | -2 | -4 | -6 | -8 |
Costs: | Marginal Cost | 9 | 6 | 5 | 3 | 2 | 3 | 4 | 5 | 7 | 10 |
| Average Cost | 9 | 7.5 | 6.7 | 5.8 | 5 | 4.7 | 4.6 | 4.6 | 4.9 | 5.4 |
1. The table above shows the information for a monopol business. what are the price and the quantity that maximize this business's profit? Show your work.
2. Please show the profit-maximizing P and Q by drawing a graph.
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Strategic Market Management
Authors: David A. Aaker
5th Edition
0471177431, 9780471177432
