Question

price quantity marginal revenue $8 0 $7 1 $6 2 $5 3 $4 4 $3 5...

price quantity marginal revenue
$8 0
$7 1
$6 2
$5 3
$4 4
$3 5
$2 6
$1 7

a monopolist firm sees the following demand, find the marginal revenue.

Here's the same firm cost schedule find the marginal cost and based off of the data in these 2 find the monopolist equilibrium quantity and price.

quantity total variable cost marginal cost
1 $5
2 $9
3 $12
4 $14
5 $18
6 $24
7 $32
8 $42

Homework Answers

Answer #1

Ans: The monopolist equilibrium quantity = 3 and price = $5

Price
( $ )
Quantity Total Revenue
( $ )
Marginal revenue
( $ )
8 0 0 -
7 1 7 7
6 2 12 5
5 3 15 3
4 4 16 1
3 5 15 -1
2 6 12 -3
1 7 7 -5
Quantity Total Variable cost
( $ )
Marginal cost
($ )
1 5 5
2 9 4
3 12 3
4 14 2
5 18 4
6 24 6
7 32 8
8 42 10

A monopolist is in equilibrium where MC = MR

It is shown in the above table.

MR =   

MC =

TR = P * Q

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