Monopoly Profit Maximizing Analysis

Total Output
Units

Price Per Unit

(Demand)

0
1
2
3
4
5
6
7
8
9
10
11
12

$8.00
$7.80
$7.60
$7.40
$7.20
$7.00
$6.80
$6.60
$6.40
$6.20
$6.00
$5.80
$5.60

Total
Total Cost
Revenue
0.00
7.80
15.20
22.20
28.80
35.00
40.80
46.20
51.20
55.80
60.00
63.80
67.20

10.00
14.00
17.50
20.75
23.80
26.70
29.50
32.25
35.10
38.30
42.70
48.70
57.70

Total
Profit

Average
Total Cost

Marginal
Cost

Marginal
Revenue

-10.00
-6.20
-2.30
1.45
5.00
8.30
11.30
13.95
16.10
17.50
17.30
15.10
9.50

0.00
14.00
8.75
6.92
5.95
5.34
4.92
4.61
4.39
4.26
4.27
4.43
4.81

10
4.00
3.50
3.25
3.05
2.90
2.80
2.75
2.85
3.20
4.40
6.00
9.00

0
7.80
7.40
7.00
6.60
6.20
5.80
5.40
5.00
4.60
4.20
3.80
3.40

Monopoly Profit Determination

$16.00
$14.00

Average Total Cost

$12.00

Marginal Cost = Marginal Revenue

$10.00
$8.00
$6.00

Most Profitable Price

$4.00
$2.00

Profit Maximization

$0.00
1

Price Per Unit (Demand)

Average Total Cost

9
Marginal Cost

10

11

12

Marginal Revenue

13

Revenue - Cost Camparison

80.00
70.00
60.00
50.00
40.00
30.00
20.00
10.00
0.00
1

6
Total Revenue

8
Total Cost

10

11

12

13