The table shows the demand schedule of a monopolist. Calculate marginal revenue and fill in the revenue column in the table. Assume that output can only be sold in integer amounts (i.e., 11 unit, 22 units, etc.). Once you have filled in marginal revenue, identify the quantity produced by the monopolist in this market. Marginal Cost Quantity Price Marginal Revenue 1 $13 $3 MR1 2 $12 $4 MR2 3 $11 $5 MR3 4 $10 $6 MR4 $9 $7 MR5 $8 $8 MR6 How many units does the monopolist produce? Quantity:

The table shows the demand schedule of a monopolist. Calculate marginal revenue and fill in the revenue column in the table. Assume that output can only be sold in integer amounts (i.e., 11 unit, 22 units, etc.). Once you have filled in marginal revenue, identify the quantity produced by the monopolist in this market. Marginal Cost Quantity Price Marginal Revenue 1 $13 $3 MR1 2 $12 $4 MR2 3 $11 $5 MR3 4 $10 $6 MR4 $9 $7 MR5 $8 $8 MR6 How many units does the monopolist produce? Quantity:

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter9: Monopoly

Section: Chapter Questions

Problem 11SQ

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Suppose that a monopolist sells a product to men and women. If the firm sets a single price, the monopolist would produce 100000 units and sell them at a price of $5.00 per unit. Suppose that at that price, the price elasticity of demand for men is -0.75 and the price elasticity of demand for women is -2.50. The monopolist is considering whether he should set discriminatory prices and asks for you're advice. Part 1 Suppose the monopolist is thinking about charging men a %10 higher price. If the monopolist does so, the quantity demanded by men would fall by _______% (give answer to one decimal) Part 2. Suppose the monopolist is thinking about charging women a 10% higher price. If the monopolist does so, the quantity demanded by women would fall by ________% (give answer to one decimal)
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