Economics 19th Edition by Stanley Brue, Cambell McConnell, Campbell McConnell, Sean Masaki Flynn, 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.