Each calculation and question is worth 2 points for a total of 20 points on the assignment. Quantity, Price, and TC are given. Calculations for TR, MR, MC, and Profit/Loss are needed.

Q P TR MR TC MC PROFIT/LOSS

0 X X X $100 X

1 $138 150

2 125 184

3 113 208

4 100 227

5 88 250

6 75 280

7 63 318

8 50 366

Using the above cost schedules and price calculate TR, MR, MC and profit/Loss. Use to and questions #1 and #2.

1. State the firm’s profit maximizing output level. _____________

2. State the price this monopolist will charge. _____________

3. State the 3 conditions necessary for the monopolist to price discriminate. 1.____________________________________________________________________ 2.____________________________________________________________________ 3. ___________________________________________________________________ Give one example of price discrimination. _____________________________________

4. State 3 reasons or barriers to entry for a monopolist. 1. __________________________________________________________________ 2. __________________________________________________________________ 3. __________________________________________________________________

5. As a monopolist lowers the price will demand become more elastic or inelastic on the demand curve? ____________________

6. If both a perfectly competitive firm and a monopolist are operating a profit-maximizing output level; which of the 2 market structures will produce a greater level of output? ________________