Question
The table shows the demand schedule of a monopolist. Calculate marginal revenue and fill in the revenue column in the table. Assume that output can
The table shows the demand schedule of a monopolist. Calculate marginal revenue and fill in the revenue column in the table. Assume that output can only be sold in integer amounts (i.e., 11 unit, 22units, etc.). Once you have filled in marginal revenue, identify the quantity produced by the monopolist in this market.
| Quantity | Price | Marginal Cost | Marginal Revenue |
| 1 | $13 | $3 | MR1 |
| 2 | $12 | $4 | MR2 |
| 3 | $11 | $5 | MR3 |
| 4 | $10 | $6 | MR4 |
| 5 | $9 | $7 | MR5 |
| 6 | $8 | $8 | MR6 |
MR1:
MR2:
MR3:
MR4:
MR5:
MR6:
How many units does the monopolistproduce?
Quantity:
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Bank Management
Authors: Timothy W Koch, Steven Scott MacDonald, S Scott MacDonald
6th Edition
0324289278, 9780324289275
