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Some exercises on Ch 11

# Some exercises on Ch 11 - Hereafter you find some more...

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Hereafter you find some more exercises (solutions at the end) Monopoly 1. The above table gives a monopolist’s demand schedule. Complete the table by calculating the total revenue and the marginal revenue. 2. A single-price monopolist has the demand and marginal cost schedules given in the above table. What is the profit-maximizing level of output and price? 3. In the above figure, draw and label the typical curves of a monopoly. Identify the quantity a single-price monopoly will produce by labeling it Q m and identify the price by labeling it P m. 1

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4. Note: ATC = Average Total Cost. In class we denoted this curve by AC. The above figure represents the cost, demand, and marginal revenue curves for a monopolist. a. Indicate the price and quantity a single-price monopolist selects by labeling the price P m and the quantity Q m. b. In the figure, lightly shade in the area that represents the single-price monopoly’s economic profit.
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