Suppose a pure monopolist is faced with the cost data shown in the table on the left and a demand schedule shown on the right.
Calculate the missing total-revenue and marginal-revenue amounts.
Instructions: Enter only whole numbers in the table below. If you are entering a negative numbers, be sure to include a negative sign (-) in front of that number.
Production and Costs Demand
Total
Product
Average
Fixed Cost Average
Variable Cost Average
Total Cost
Marginal
Cost Price Quantity Demanded Total
Revenue Marginal
Revenue
0 na na na na $115 0 $ na
1 $60.00 $45.00 $105.00 $45 100 1 $
2 30.00 42.50 72.50 40 83 2
3 20.00 40.00 60.00 35 71 3
4 15.00 37.50 52.50 30 63 4
5 12.00 37.00 49.00 35 55 5
6 10.00 37.50 47.50 40 48 6
7 8.57 38.57 47.14 45 42 7
8 7.50 40.63 48.13 55 37 8
9 6.67 43.33 50.00 65 33 9
10 6.00 46.50 52.50 75 29 10
a. What is the profit-maximizing price?
b. What is the profit-maximizing Q (quantity)?
c. What is the monopolist's profit?