The following table shows the demand curve facing a monopolist who produces at a constant marginal cost of $10:
Price                Quantity
18………………………0
16………………………4
14………………………8
12………………………12
10………………………16
8………………………20
6………………………24
4………………………28
2………………………32
0………………………36
a. Calculate the firm’s marginal revenue curve.
b. What are the firm’s profit-maximizing output and price? What is its profit?
c. What would the equilibrium price and quantity be in a competitive industry?
d. What would the social gain be if this monopolist were forced to produce and price at the competitive equilibrium? Who would gain and lose as a result?