2.Based on the demand and cost data for a pure monopolist given
in the table below, answer the following questions
Price ($) 1000 600 500 400 300 200
Total Cost 500 520 580 700 1000 1500
a. Calculate the marginal revenue and marginal cost for this
b. How many units of output will the profit-maximizing
monopolist produce? At what price?
c. If this is a perfectly discriminating monopolist and he sells
4 units of this product, what is his total revenue?
3. Draw a graph according to the following descriptions, label
all the curves you used and indicate the area of economic profit or
a. a purely competitive firm in earning economic profits in the
b. a natural monopoly
c. a monopolistically competitive firm experiencing economic
losses in the short run.
d. a monopolistically competitive firm in long run
e. an oligopoly in which the members are behaving in
4 Assume that a purely competitive firm has the schedule of the
average and marginal costs given in the table below