You are a monopolist facing the following demand schedule:
QuantityPrice
1 …………………..$20
2 …………………..$18
3 …………………..$16
4 …………………..$14
You produce this good at a constant average and marginal cost of $12.
a. Calculate marginal revenue for each level of output.
b. Find the profit-maximizing price and quantity.
c. How much profit will you earn?