Download the App!

Get 24/7 study help with the Numerade app for iOS and Android! Enter your email for an invite.

Get the answer to your homework problem.

Try Numerade free for 7 days

Like

Report

Suppose a pure monopolist is faced with the demand schedule shown below and the same cost data as the competitive producer discussed in question 4 at the end of Chapter $9 .$ Calculate the missing total-revenue and margina lrevenue amounts, and determine the profit-maximizing price and profit-earning output for this monopolist. What is the monopolist's profit? Verify your answer graphically and by comparing total revenue and total cost.

No Related Courses

Chapter 10

Pure Monopoly

Firm Behavior and the Organization of Industry

Markets and Welfare

02:03

Exhibit 9-5 Demand and…

00:53

Suppose that a price-discr…

02:09

Assume that a pure monopol…

So this is basically the answers. This is the total revenue is calculated by multiplying price, times quantity, the and then also here's a marginal revenue by calculating the change in pull revenue divided by the change in quantity. Ah, yeah. So now the second part of the question is determine the price and quantity where, uh, that are present client the efficient, fresh and quantity, and they're not efficient. But the optimal price and quantity for a monopoly. It with me at four because m. R and I'm seeing meat right before, uh, quantity five in the graph anyway. And the profits would be the green box by Mr Blue Box, which is because it's the quantity times the price minus the average total cost. I'm squiring and comparing Ah, whole revenue minus total cost, which is his prophet at far at four versus the total revenue and total cost that five. It's clear that quantity for is ah higher profit

View More Answers From This Book

Find Another Textbook

05:47

Explain and evaluate: "Industry complains of the higher taxes it must p…

05:14

List the special characteristics of the U.S. health care market and specify …

01:57

Explain the error in the following statement: "A firm out to maximize i…

02:01

Show that a profit-maximizing monopolist will never operate in the price-ine…

08:34

Recall the growth-accounting equation [equation (1) on page $514] .$ Calcula…

01:51

Suppose the productivity of capital and labor are as shown in the accompanyi…

01:18

What is the labor-force status of each of the following?a. A teenager wh…

01:02

Draw the supply and demand curves for the oil market. Now suppose that a wor…

04:25

Why is there so much advertising in monopolistic competition and oligopoly? …

02:29

I consume all my income at every level of income. Draw my consumption and sa…