1. Suppose a monopolist has the following data:

Price Quantity Total Variable Cost Marginal Revenue Marginal Cost

5 1 1 _____________ ___________

4 2 2 _____________ ____________

3 3 4 _____________ ____________

2 4 7 _____________ ____________

1 5 11 _____________ ____________

1. Compute marginal revenue and marginal cost for each level of output
2. Find the profit-maximizing quantity and price
3. If Total Fixed Cost equals 3, what is the firm's profit or loss?
4. If Total Fixed Cost = 7, what is the firm's profit or loss?
5. If instead, the Total Variable Cost column read

10

11

13

16

20,

1. What is the firm's profit maximizing or loss minimizing output?
2. If in this question Total Fixed Cost = 6, what would be the amount of the firm's profit or loss?