Question

1.A single-price monopolist is a monopolist that sells each unit of its output for the same price to all its customers. At its profit-maximizing output level, the single-price monopolist produces where price is ___________ than marginal cost because for it price is __________ than marginal revenue and its demand curve lies __________ its marginal revenue curve.

less; less; below

greater; greater; above

greater; greater; below

less; less; above

greater; less; below

2.

Exhibit 2

	Quantity Sold
Price	(units)	Total Cost
$10	10	$80
9	20	100
8	30	130
7	40	170
6	50	230
5	60	300
4	70	380

A single-price monopolist is a monopolist that sells each unit of its output for the same price to all its customers. Refer to Exhibit 2. A single-price monopolist earns a total profit of __________ when it produces the profit maximizing level of output.

Group of answer choices

$120

$110

$180

$80

$49

Answer 1

1) A single-price monopolist is a monopolist that sells each unit of its output for the same price to all its customers. At its profit-maximizing output level, the single-price monopolist produces where price is GREATER than marginal cost because for it price is GREATER than marginal revenue and its demand curve lies ABOVE its marginal revenue curve.

greater; greater; above

2)

P	Q	TC	MC	TR	MR	PROFIT
10	10	80		100		20
9	20	100	2	180	8	80
8	30	130	3	240	6	110
7	40	170	4	280	4	110
6	50	230	6	300	2	70
5	60	300	7	300	0	0
4	70	380	8	280	-2	-100

Setting MC=MR, it will produce Q = 40 units at P=7

Profit = 110