Monopoly Data

Spring 2018
Microeconomics Course Assignment
In fulfillment of Course ePortfolio and CSIS requirement

Part 2
Monopoly Profit Maximizing Analysis Average
Total Price Per Total Total Total Marginal
Output Unit Revenue Total Profit Cost Cost
Units (Demand) (TR) Cost (TC) (TP) (ATC) (MC)
0 $ 7.10 $ - $ 9.00 $ -9.00 $ - $ -
1 $ 6.90 $ 6.90 $ 13.00 $ -6.10 $ 13.00 $ 4.00
2 $ 6.70 $ 13.40 $ 16.60 $ -3.20 $ 8.30 $ 3.60
3 $ 6.50 $ 19.50 $ 19.85 $ -0.35 $ 6.62 $ 3.25
4 $ 6.30 $ 25.20 $ 22.90 $ 2.30 $ 5.73 $ 3.05
5 $ 6.10 $ 30.50 $ 25.80 $ 4.70 $ 5.16 $ 2.90
6 $ 5.90 $ 35.40 $ 28.60 $ 6.80 $ 4.77 $ 2.80
7 $ 5.70 $ 39.90 $ 31.35 $ 8.55 $ 4.48 $ 2.75
8 $ 5.50 $ 44.00 $ 34.20 $ 9.80 $ 4.28 $ 2.85
9 $ 5.30 $ 47.70 $ 37.40 $ 10.30 $ 4.16 $ 3.20
10 $ 5.10 $ 51.00 $ 41.80 $ 9.20 $ 4.18 $ 4.40
11 $ 4.90 $ 53.90 $ 47.80 $ 6.10 $ 4.35 $ 6.00
12 $ 4.70 $ 56.40 $ 56.80 $ -0.40 $ 4.73 $ 9.00

List the characteristics of the Monopoly market structure.

1.Single seller
2.Faces entire industry demand
3.Must lower price to sell more
4.Not all units sold for same price (MR < P)

The ultimate goal of the monopoly market structure is to maximize the profit as well.
How this goal is attained. To make sure the marginal revenue equals to the marginal cost. In this situa
 Marginal
Revenue
(MR)
$ -
$ 6.90
$ 6.50
$ 6.10
$ 5.70
$ 5.30
$ 4.90 MC≈MR
When MR > MC: the
$ 4.50 firm is producing
$ 4.10 less, and they can
$ 3.70 increase profit by
$ 3.30 increasing output.
$ 2.90
$ 2.50

inal cost. In this situation, the demand is higher then the marginal revenue, so the company should set their pr
mpany should set their price as same as the demand with the same output.