Use the accompanying total revenue schedule of Emerald, Inc., a monopoly producer of 10-
Quantity of emeralds demanded | Total revenue |
1 | $100 |
2 | 186 |
3 | 252 |
4 | 280 |
5 | 250 |
the demand schedule (Hint: the average revenue at each quantity indicates the price at which that quantity would be demanded.)
the marginal revenue schedule
the quantity effect component of marginal revenue at each output level
the price effect component of marginal revenue at each output level
What additional information is needed to determine Emerald, Inc.’s profit-
Replicate Figure 61.3 and use your graph to show what happens to the following when the marginal cost of diamond production rises from $200 to $400. Use the information in Table 61.1 to identify specific numbers for prices and quantities on your graph.
the marginal cost curve
the profit-
the profit of the monopolist
the quantity that would be produced if the diamond industry were perfectly competitive, and the associated profit