In Figure 7.1, (a) What is the highest price the monopolist could charge and still sell fish?
Question:
In Figure 7.1,
(a) What is the highest price the monopolist could charge and still sell fish?
(b) What is total revenue at that highest price?
(c) What happens to total revenue as price is reduced from A to F?
(d) What is the value of marginal revenue as price is reduced from F to G?
Transcribed Image Text:
$14 13 12 Marginal revenue is less than price for a monopoly. 11 10 Demand (= price) 4 Marginal revenue 5 6 7 8 2 3 10 4 QUANTITY (pounds of fish per hour) PRICE (per pound) 9. (1) Quantity x (2) Price (3) Total Revenue (4) Marginal Revenue $13 $13 -$11 12 24 11 33 4 10 40 5 5 45 3 48 49
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a 13 b 13 c Total Revenue increases by 48 d 1 Explanation a According to the dema...View the full answer
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