Suppose you start a business which creates custom Tshirts and you are deciding what price to charge. Furthermore, you operate your business in a small isolated town in a remote location. There are no other local businesses which produce a similar item. Therefore, you have a monopoly. You interview 5 local buyers to determine the maximum amount they are willing to pay for these custom T-shirts {known as the reservation price]. The buyers and their reservation prices are depicted in the following table: Reservation price Buyer l$l Eric 40 Kyle 30 Stan 20 Kenny 10 Stan's Dad 0 Suppose your marginal cost is $10 per Tshirt. You may ignore other costs for now. The following graph depicts the Demand {D}, Marginal Cost {MC} and Marginal Revenue {MR} for your business. Price ($ per unit) $50 $40 $30 $20 $10 MC MR D SO 0 1 2 3 4 5 D -O-MR O-MC Quantity (units)