The data below relate to a pure monopolist and the product it produces. )a) What is the profit-maximizing output and price for this monopolist? b) What is the profit/loss for this firm operating under pure monopoly? c) What is the profit-maximizing output and price for a competitor? d) What is the profit/loss for this firm operating under pure competition? (TR=Total Revenue; MR=Marginal Revenue) Price Q TR MR TC MC 22 0 0 20 20 1 20 20 24 4 18 2 36 16 27 3 16 3 48 12 32 5 14 4 56 8 40 8 12 5 60 4 49 9 10 6 60 0 59 10
The data below relate to a pure monopolist and the product it produces. )a) What is the profit-maximizing output and price for this monopolist? b) What is the profit/loss for this firm operating under pure monopoly? c) What is the profit-maximizing output and price for a competitor? d) What is the profit/loss for this firm operating under pure competition? (TR=Total Revenue; MR=Marginal Revenue) Price Q TR MR TC MC 22 0 0 20 20 1 20 20 24 4 18 2 36 16 27 3 16 3 48 12 32 5 14 4 56 8 40 8 12 5 60 4 49 9 10 6 60 0 59 10
Chapter8: Monopoly
Section: Chapter Questions
Problem 10SQ
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Question
The data below relate to a pure monopolist and the product it produces.
)a) What is the profit-maximizing output and
b) What is the
c) What is the profit-maximizing output and price for a competitor?
d) What is the profit/loss for this firm operating under pure competition?
(TR=Total Revenue; MR=Marginal Revenue)
Price |
Q |
TR |
MR |
TC |
MC |
22 |
0 |
0 |
|
20 |
|
20 |
1 |
20 |
20 |
24 |
4 |
18 |
2 |
36 |
16 |
27 |
3 |
16 |
3 |
48 |
12 |
32 |
5 |
14 |
4 |
56 |
8 |
40 |
8 |
12 |
5 |
60 |
4 |
49 |
9 |
10 |
6 |
60 |
0 |
59 |
10 |
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ISBN:
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Author:
Roger A. Arnold
Publisher:
Cengage Learning