Microeconomics 18th Edition by Campbell McConnell, Stanley Brue, Sean Flynn

Exercise 10

Suppose a pure monopolist is faced with the demand schedule shown below and the same cost data as the competitive producer discussed in question 4 at the end of Chapter 9. Calculate the missing total- 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.