Microeconomics 19th Edition by Campbell McConnell,Stanley Brue,Sean Flynn

Exercise 1

Suppose a pure monopolist is faced with the demand schedule shown below and the same cost data as the competitive producer discussed in problem 4 at the end of Chapter 8. Calculate the missing total-revenue and marginal- revenue amounts, and determine the profit-maximizing price and profit-maximizing output for this monopolist. What is the monopolist's profit? Verify your answer graphically and by comparing total revenue and total cost.