Complete the following table that contains cost and demand information for an unregulated monopoly.

Price                                        $15       $13       $11       $9       $7       $5       $3       $1

Quantity Demanded                       1          2          3          4          5          6          7          8

Marginal Revenue                                                                                                                                                                                            

Total Cost                                 $10       $12       $19       $28       $44       $64       $89     $119

Marginal Cost                                                                                                                                                              

a. What is the profit-maximizing rate of output for the unregulated monopoly with the information in the table above?
                                   

b. What price should be charged at that rate of output in a. above?

c. If a regulator wanted to force the monopoly to produce where P = MC, what price should be set by the regulator?

d. What rate of output will the monopoly choose to produce given the price in c. above?

Answer rating: 100% (QA)

Price Quantity Demanded Marginal Revenue Total Cost Marginal Cost 15 1 10 13 2 2 12 2 11 3 4 19 7 9 ... View the full answer