Explain why charging a higher or lower price than p = 10 reduces the monopolys profit in

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Explain why charging a higher or lower price than p = 10 reduces the monopoly€™s profit in Figure 12.5. Show the monopoly€™s profit if p = 20 and compare it to its profit if p = 10.

Figure 12.5

P) Picels Aboe Magina Cont (a) Picefquals Marginal Cost 80 A - 2.450 A, - $1800 20 10 MC 10 MC 60 70 80 Q, Unts per day

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Microeconomics

ISBN: 978-0134519531

8th edition

Authors: Jeffrey M. Perloff

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