Essentials of Economics 2nd Edition by Campbell McConnell, Randy Grant, Stanley Brue

Exercise 5

Suppose a pure monopolist is faced with the demand schedule that follows and the same cost data as the competitive producer discussed in question 3 at the end of Chapter 7. Calculate the missing total-revenue and marginal-revenue amounts, and determine the profit-maximizing price and profit-earning output for this monopo­list. What is the monopolist's profit Verify your answer graphically and by comparing total rev­enue and total cost.