For a monoply  A)Plot Margin revenue, demand, marginal cost, to find profit-maximizing price and output.-using midpoint B) using 17/6 as the avg cost what is the profit for the monopolist  QD Demand Revenue Marginal Revenue Marginal Cost 0 8 0 NA NA 1 7 7 7 5 2 6 12 5 3 3 5 15 3 2 4 4 16 1 2 5 3 15 -1 3 6 2 12 -3 4 7 1 7 -5 7

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter9: Monopoly
Section: Chapter Questions
Problem 21RQ: How can a monopolist identify the profit-maximizing level of output if it knows its marginal revenue...
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For a monoply 

A)Plot Margin revenue, demand, marginal cost, to find profit-maximizing price and output.-using midpoint

B) using 17/6 as the avg cost what is the profit for the monopolist 

QD

Demand

Revenue

Marginal Revenue

Marginal Cost

0

8

0

NA

NA

1

7

7

7

5

2

6

12

5

3

3

5

15

3

2

4

4

16

1

2

5

3

15

-1

3

6

2

12

-3

4

7

1

7

-5

7

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