The accompanying Wale below shows the demand schedule facing a monopolist who produces at a constant marginal cost of $5.
Demand schedule facing a monopolist
|
Price
|
Quantity Demanded |
|
9
|
0 |
|
8
|
1 |
|
7
|
2 |
|
6
|
3 |
|
5
|
4 |
|
4
|
5 |
|
3
|
6 |
|
2
|
7 |
|
1
|
8 |
|
0
|
9 |
a) calculate the firm, marginal revenue schedule.
b) what is the profit-maximizing output for the monopolist?
c) what is the optimal price for the monopolist?
d) what would the equilibrium price and output be for a competitive industry?