7. Study Questions and Problems #7 Use the data from the following demand schedule to answer the questions that follow. Price (P) (Dollars) Total Revenue (TR) Marginal Revenue (MR) Quantity Demanded (Q) (Dollars) (Dollars) 20.00 0 0.00 18.00 18.00 1 18.00 14.00 16.00 2 32.00 10.00 14.00 3 42.00 6.00 12.00 4 48.00 2.00 10.00 5 50.00 -2.00 8.00 6 48.00 -6.00 6.00 7 42.00 -10.00 4.00 8 32.00 -14.00 2.00 9 18.00 -18.00 0.00 10 0.00 Make the unrealistic assumption that production is costless for the monopolist in this question. The monopolist will charge a price of $ for the monopolist. per unit and sell units. This will yield an economic profit of S Now assume the marginal cost is above zero and is equal to the marginal revenue of the fourth unit. The monopolist will now charge monopolist will now earn price and produce when production was costless. In turn, the economic profit compared to when production was costless.
7. Study Questions and Problems #7 Use the data from the following demand schedule to answer the questions that follow. Price (P) (Dollars) Total Revenue (TR) Marginal Revenue (MR) Quantity Demanded (Q) (Dollars) (Dollars) 20.00 0 0.00 18.00 18.00 1 18.00 14.00 16.00 2 32.00 10.00 14.00 3 42.00 6.00 12.00 4 48.00 2.00 10.00 5 50.00 -2.00 8.00 6 48.00 -6.00 6.00 7 42.00 -10.00 4.00 8 32.00 -14.00 2.00 9 18.00 -18.00 0.00 10 0.00 Make the unrealistic assumption that production is costless for the monopolist in this question. The monopolist will charge a price of $ for the monopolist. per unit and sell units. This will yield an economic profit of S Now assume the marginal cost is above zero and is equal to the marginal revenue of the fourth unit. The monopolist will now charge monopolist will now earn price and produce when production was costless. In turn, the economic profit compared to when production was costless.
Chapter6: Elasticities
Section: Chapter Questions
Problem 12P
Related questions
Question
Transcribed Image Text:7. Study Questions and Problems #7
Use the data from the following demand schedule to answer the questions that follow.
Price (P)
(Dollars)
Total Revenue (TR) Marginal Revenue (MR)
Quantity Demanded (Q) (Dollars)
(Dollars)
20.00
0
0.00
18.00
18.00
1
18.00
14.00
16.00
2
32.00
10.00
14.00
3
42.00
6.00
12.00
4
48.00
2.00
10.00
5
50.00
-2.00
8.00
6
48.00
-6.00
6.00
7
42.00
-10.00
4.00
8
32.00
-14.00
2.00
9
18.00
-18.00
0.00
10
0.00
Make the unrealistic assumption that production is costless for the monopolist in this question.
The monopolist will charge a price of $
for the monopolist.
per unit and sell
units. This will yield an economic profit of S
Now assume the marginal cost is above zero and is equal to the marginal revenue of the fourth unit.
The monopolist will now charge
monopolist will now earn
price and produce
when production was costless. In turn, the
economic profit compared to when production was costless.
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