Principles of Economics
Monopoly and Competition Assignment Worksheet
Directions
This assignment focuses on the comparison of perfect competition and monopoly in terms of efficiency and fairness. To complete this assignment you must complete all of the following questions.
Microeconomic Problem
Price Quantity Demanded Total Revenue Marginal Revenue
$10 0 -
$9 1
$8 2
$7 3
$6 4
$5 5
$4 6
$3 7
$2 8
$1 9
Notice what happens to Fred's total revenue as he produces and sells more-it graphs like a haystack, first going up, and then going down. A perfect competitor has a linear upsloping total revenue curve. Why? Why is the monopolist total revenue curve different from that of a pure competitor?