Price Discrimination
Suppose a pure monopolist is faced with the demand schedule shown in table 1, and the cost data as shown in table 2. 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.
|
Price |
Quantity |
|
115 |
0 |
|
100 |
1 |
|
83 |
2 |
|
71 |
3 |
|
63 |
4 |
|
55 |
5 |
|
48 |
6 |
|
42 |
7 |
|
37 |
8 |
|
33 |
9 |
|
29 |
10 |
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