A monopolist serves a market with five potential buyers, each of whom would buy at most one piece of the monopolist's good. Anna would be willing to pay up to £50 for it, Bob up to £70, Chloe up to £90, Dave up to £110 and Elizabeth up to £130. The monopolist's variable cost function is given in below table. [Note: In parts (a) and (b), working outs only need to be shown for at least one result per line of the table.]
A monopolist serves a market with five potential buyers, each of whom would buy at most one piece of the monopolist's good. Anna would be willing to pay up to £50 for it, Bob up to £70, Chloe up to £90, Dave up to £110 and Elizabeth up to £130. The monopolist's variable cost function is given in below table. [Note: In parts (a) and (b), working outs only need to be shown for at least one result per line of the table.]
Chapter8: Monopoly
Section: Chapter Questions
Problem 15SQ
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![A monopolist serves a market with five potential buyers, each of whom would buy at most one piece
of the monopolist's good. Anna would be willing to pay up to £50 for it, Bob up to £70, Chloe up to
£90, Dave up to £110 and Elizabeth up to £130. The monopolist's variable cost function is given in
below table. [Note: In parts (a) and (b), working outs only need to be shown for at least one result
per line of the table.]
Quantity
Marginal Costs
Price
Marg.
Revenue
a)
1
50
2
55
3
60
4
65
5
70
Indicate in the table which price the monopolist would want to charge for each given
quantity.
b) Find the marginal revenue for each quantity.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb0044e22-2954-4953-9283-7fbb8c02fa7d%2F83fbc1d3-7491-4a29-8976-01b0416d38cb%2Fw6wkpne_processed.png&w=3840&q=75)
Transcribed Image Text:A monopolist serves a market with five potential buyers, each of whom would buy at most one piece
of the monopolist's good. Anna would be willing to pay up to £50 for it, Bob up to £70, Chloe up to
£90, Dave up to £110 and Elizabeth up to £130. The monopolist's variable cost function is given in
below table. [Note: In parts (a) and (b), working outs only need to be shown for at least one result
per line of the table.]
Quantity
Marginal Costs
Price
Marg.
Revenue
a)
1
50
2
55
3
60
4
65
5
70
Indicate in the table which price the monopolist would want to charge for each given
quantity.
b) Find the marginal revenue for each quantity.
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