THE PROBLEM BELOW IS DUE FOR HOMEWORK ON THURSDAY, MARCH 26.
Note: Because our next exam is on Tuesday, Mar. 31, we will be going over this problem in class on
Thursday, Mar. 26. THUS, I WILL ACCEPT NO HOMEWORKS AFTER I COLLECT THEM IN CLASS ON
MARCH 26.
NAME__________________________
TOTAL POINTS = 40
2. Suppose that a pure monopolist has the following demand schedule and short-run
cost schedule:
Q P TR MR TC ATC AVC MC
0 200 --- 200 --- --- ---
1 180 260 260 60 60
2 160 315 157.5 57.5 55
3 140 365 121.67 55 50
4 120 425 106.25 56.25 60
5 100 495 99 59 70
6 80 575 95.83 62.5 80
7 60 665 95 66.43 90
8 40 765 95.63 70.63 100
9 20 875 97.22 75 110
a. Calculate Total Revenue and Marginal Revenue for each level of output
and put in the chart above. Show one calculation of each. (10 points)
