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    This post completes a monopolist table

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    In the following table are demand and cost data for a pure monopolist. Complete the table by filling
    in the columns for total revenue, marginal revenue, and marginal cost. Answer these three questions:

    (a) What output will the monopolist produce?
    (b) What price will the monopolist charge?
    (c) What total profit will the monopolist receive at the profit-maximizing level of output?

    Total Marginal Total Marginal
    Quantity Price revenue revenue cost cost
    0 $34 $______ $ 20
    1 32 ______ $______ 36 $______
    2 30 ______ ______ 46 ______
    3 28 ______ ______ 50 ______
    4 26 ______ ______ 54 ______
    5 24 ______ ______ 56 ______
    6 22 ______ ______ 64 ______
    7 20 ______ ______ 80 ______
    8 18 ______ ______ 100 ______
    9 16 ______ ______ 128 ______
    10 14 ______ ______ 160 ______

    Price discrimination is often used by businesses. Explain the conditions under which price discrimination is practiced and the economic consequences of price discrimination.

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    Solution Preview

    In the following table are demand and cost data for a pure monopolist. Complete the table by filling
    in the columns for total revenue, marginal revenue, and marginal cost. Answer these three questions:

    (a) What output will the monopolist produce?
    (b) What price will the monopolist charge?
    (c) What total profit ill the monopolist receive at the profit-maximizing level of output?

    Solution:

    Complete the table by filling in the columns for total revenue, marginal revenue, and marginal cost.

    QUANTITY PRICE TOTAL REVENUE MARGINAL REVENUE TOTAL COST MARGINAL COST
    0 $34 0 - $20 -
    1 32 32 32 36 16
    2 30 ...

    Solution Summary

    The solution provides all answers to complete the monopolist's table, and includes discussions on monopolist output, monopolist charges, and total profit at profit-maximizing levels of output.

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