extra_questions_monopoly_soln

extra_questions_monopoly_soln - Econ 1101HolmesFall 2009...

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1 Econ 1101—Holmes—Fall 2009 Practice Questions about Monopoly Congratulations! You have just invented a software program that eliminates all email spam and does your laundry as well. You have obtained a patent on the software which will give you a monopoly for 20 years. You have hired a Ph.D. economist to estimate the demand curve for your new product and the results are tabulated in columns one and two in the table below. (a) Fill in the column labeled "Revenue." Use only whole numbers and don't include any units (just the number.). Q P Revenue Marginal Revenue 0 6 0 6 1 5 5 4 2 4 8 2 3 3 9 0 4 2 8 -2 5 1 5 -4 6 0 0 -6 (b) The marginal revenue between Q=0 and Q=1 is 5 dollars (this is the difference in revenue between Q=0 and Q=1). The marginal revenue between Q=1 and Q=2 is 3 . The marginal revenue at Q=1 is 4 . (This is the midpoint of the two previous numbers.) ( (5+3)/2=4 ) Fill in the marginal revenue at Q=1 in the table above. (c) Plot marginal revenue in the graph below. Use the rule from class (which works when
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This note was uploaded on 04/06/2010 for the course ECON 1101 taught by Professor Someguy during the Spring '07 term at Minnesota.

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extra_questions_monopoly_soln - Econ 1101HolmesFall 2009...

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