Topic 10 Monopoly Assignment 1
1. Which of the following suppliers is most likely to be a monopolist?
A water company
2. Which of the following scenarios best represents the pricing behavior of a monopolist?
Our Drugs Inc. produces where its marginal revenue is equal to its marginal cost
and prices on its downward-sloping demand curve, such that the market for its
product clears knowing it will not face competition due to patents it holds on its
products.
3. The table below shows the demand and total revenue for a monopolist. Fill in the
"Marginal Revenue" column for the various prices and quantities.
Instructions: Enter your answers as a whole number.
Demand and Revenues
Price Quantity Total Marginal Revenue
(dollars) Demanded Revenue(dollars) (dollars)
$50 30 $1,500 —
49 31 1,519 $ 19
48 32 1,536 17
47 33 1,551 15
46 34 1,564 13
45 35 1,575 11
44 36 1,584 9
4. The table below shows the demand and total revenue for a monopolist. Fill in the
"Marginal Revenue" column for the various prices and quantities.
Instructions: Enter your answers as a whole number. If you are entering any negative
numbers be sure to include a negative sign (-) in front of those numbers.
Demand and Revenues
Price Quantity Total Revenue Marginal Revenue
(dollars) Demanded (dollars) (dollars)
$250 0 $0 —
225 20 4,500 $ 225
200 40 8,000 175
175 60 10,500 125
150 80 12,000 75
125 100 12,500 25
100 120 12,000 -25
5. If a monopolist is able to increase the amount of product she sells from 400 to 420 units
by lowering the price of that product from $50 to $45, her marginal revenue is:
$-55
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, Topic 10 Monopoly Assignment 2
6. The table below shows the marginal revenue and costs for a monopolist.
Demand, Costs, and Revenues
Price Quantity Marginal Revenue Marginal Cost Average Total Cost
(dollars) Demanded (dollars) (dollars) (dollars)
$130 200 $110 $25 $139.00
120 300 90 32 103.30
110 400 70 40 87.50
100 500 50 50 80.00
90 600 30 62 77.00
80 700 10 77 77.00
What is the monopolist's profit at the profit-maximizing level of output?
$10,000
7. The figure below shows the demand, marginal revenue, marginal cost, and average total
cost curves for a monopolist.
For this monopolist, the profit-maximizing quantity is 75 units and the profit-
maximizing price is $250 .
This study source was downloaded by 100000871695925 from CourseHero.com on 10-27-2023 14:15:44 GMT -05:00
https://www.coursehero.com/file/44349642/Topic-10-Monopoly-Assignmentdocx/
1. Which of the following suppliers is most likely to be a monopolist?
A water company
2. Which of the following scenarios best represents the pricing behavior of a monopolist?
Our Drugs Inc. produces where its marginal revenue is equal to its marginal cost
and prices on its downward-sloping demand curve, such that the market for its
product clears knowing it will not face competition due to patents it holds on its
products.
3. The table below shows the demand and total revenue for a monopolist. Fill in the
"Marginal Revenue" column for the various prices and quantities.
Instructions: Enter your answers as a whole number.
Demand and Revenues
Price Quantity Total Marginal Revenue
(dollars) Demanded Revenue(dollars) (dollars)
$50 30 $1,500 —
49 31 1,519 $ 19
48 32 1,536 17
47 33 1,551 15
46 34 1,564 13
45 35 1,575 11
44 36 1,584 9
4. The table below shows the demand and total revenue for a monopolist. Fill in the
"Marginal Revenue" column for the various prices and quantities.
Instructions: Enter your answers as a whole number. If you are entering any negative
numbers be sure to include a negative sign (-) in front of those numbers.
Demand and Revenues
Price Quantity Total Revenue Marginal Revenue
(dollars) Demanded (dollars) (dollars)
$250 0 $0 —
225 20 4,500 $ 225
200 40 8,000 175
175 60 10,500 125
150 80 12,000 75
125 100 12,500 25
100 120 12,000 -25
5. If a monopolist is able to increase the amount of product she sells from 400 to 420 units
by lowering the price of that product from $50 to $45, her marginal revenue is:
$-55
This study source was downloaded by 100000871695925 from CourseHero.com on 10-27-2023 14:15:44 GMT -05:00
https://www.coursehero.com/file/44349642/Topic-10-Monopoly-Assignmentdocx/
, Topic 10 Monopoly Assignment 2
6. The table below shows the marginal revenue and costs for a monopolist.
Demand, Costs, and Revenues
Price Quantity Marginal Revenue Marginal Cost Average Total Cost
(dollars) Demanded (dollars) (dollars) (dollars)
$130 200 $110 $25 $139.00
120 300 90 32 103.30
110 400 70 40 87.50
100 500 50 50 80.00
90 600 30 62 77.00
80 700 10 77 77.00
What is the monopolist's profit at the profit-maximizing level of output?
$10,000
7. The figure below shows the demand, marginal revenue, marginal cost, and average total
cost curves for a monopolist.
For this monopolist, the profit-maximizing quantity is 75 units and the profit-
maximizing price is $250 .
This study source was downloaded by 100000871695925 from CourseHero.com on 10-27-2023 14:15:44 GMT -05:00
https://www.coursehero.com/file/44349642/Topic-10-Monopoly-Assignmentdocx/
