Question: Consider the following Quantity, Price, and Total Cost schedule for a single price monopolist
|
Price per unit
|
Quantity
|
Total Revenue
|
Marginal Revenue
|
Total Cost
|
Marginal Cost
|
Average Total Cost
|
|
10
|
0
|
0
|
0
|
100
|
0
|
0
|
|
8
|
100
|
800
|
800
|
300
|
2
|
3
|
|
6
|
200
|
1200
|
400
|
700
|
4
|
3.5
|
|
4
|
300
|
1200
|
0
|
1300
|
6
|
4.5
|
|
2
|
400
|
800
|
-400
|
2100
|
8
|
5.5
|
|
0
|
500
|
0
|
-800
|
3100
|
10
|
6.5
|
1. Complete the Total and Marginal Revenue columns. - Done
2. What quantity maximizes total revenue? 300
3. Complete the rest of the table. - Done
4. For a single price monopolist, what is the profit maximizing output?
5. For a single price monopolist, what is the profit maximizing price per unit?
6. At the single price monopolist's profit maximizing output and price, what is the profit per unit?
7. At the single price monopolist's profit maximizing output and price, what is the total profit?
8. Show the monopolist graphically; assume standard "U" shaped cost curves instead of the specific costs from the table.
9. At what price is the price elasticity of demand equal to one? (You do not need to actually calculate elasticity)