(KEY QUESTION) Bob is a magazine monopolist. His marginal cost of production (per magazine) is constant at $5. His demand information is as follows: Price ($) 50 40 QD 5 30 10 20 20 15 30 10 50 102 200 a. Calculate the total revenue for Bob at each price. 5 2.50 b. Calculate the (approximate) marginal revenue for Bob at each price. c. What is Bob's profit-maximising output level and price? Compare this with the perfectly competitive equilibrium level of output and price.

(KEY QUESTION) Bob is a magazine monopolist. His marginal cost of production (per magazine) is constant at $5. His demand information is as follows: Price ($) 50 40 QD 5 30 10 20 20 15 30 10 50 102 200 a. Calculate the total revenue for Bob at each price. 5 2.50 b. Calculate the (approximate) marginal revenue for Bob at each price. c. What is Bob's profit-maximising output level and price? Compare this with the perfectly competitive equilibrium level of output and price.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Monopoly

Section: Chapter Questions

Problem 1PA

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