Question: Minnie's Mineral Springs is a single-price monopoly. Columns 1 and 2 of the table set out the market demand schedule for Minnie's water, and columns 2 and 3 set out Minnie's total cost schedule.
Price Quantity Total cost
(dollars per bottle) (bottles per hour) (dollars per hour)
10 0 1
8 1 3
6 2 7
4 3 13
2 4 21
0 5 31
Calculate Minnie's marginal revenue schedule and draw a graph of the market demand curve and Minnie's marginal revenue curve. Explain why Minnie's marginal revenue is less than the price.