Question: The following table shows data for a monopolist. The first two columns provide all the data necessary to plot the monopolist's demand curve. a. Compute

The following table shows data for a monopolist. The first two columns provide all the data necessary to plot the monopolist's demand curve.

a. Compute total and average revenue for each level of output and fill in the third and fourth columns in the table. Explain why average revenue is equal to price.
b. Compute marginal revenue for each successive change in output and fill in the last column. Explain why MR is less than price.
c. On a scale diagram, plot the demand (average revenue) curve and the marginal revenue curve.
d. On a second scale diagram, with dollars on the vertical axis and output on the horizontal axis, plot the TR curve. What is the value of MR when TR reaches its maximum?

Total Average Marginal QuantityRevenue Revenue Revenue Price Demanded (TR) (AR (MR) $20 18 16 14 12 10 100 125 150 175 200 250 275 300

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