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Demand Schedule Total Marginal Total Marginal Average Quantity Price Revenue Revenue Cost Cost Total Cost $172 $100 162 190 152 270 142 340 132 400 122 470 112 102 640 750 DEOL Questions 1. Fill in all columns in the table above. (Use quantity & price to calculate Total Revenue. The rest of the columns can be calculated from the columns given.) 2. What Principle does the monopolist use to maximize profits? 3. What quantity would the monopolist produce to maximize profits? Q* = 4. Draw the graph of monopolist's Demand curve, Marginal Revenue, Marginal Cost & Average Total Cost curves, On the graph: A. Mark the point where Marg. Rev. = Marg. Cost B. Show the optimal quantity, Q*, for the firm to maximize profits. C. Show the optimal price, P*, for the firm to maximize profits. P* = D. Which curve determines the monopolist's price? E. What is the monopolist's profit? Profit = Monopoly Price $170 1 2 3 4 6 7 10 11 Quantity