Unit 3: Are Businesses Efficient? Product Markets and Efficiency

Lesson 10a: Monopoly: Characteristics and Short Run Equilibrium

Key Problems

How to find monopoly quantity, price, and profits on a graph

How to find monopoly quantity, price and profits on a table

[works for me if I save the file to my computer, then open it]

 

Click on the links above to learn how to do these problems.

 

How to find monopoly quantity, price, and profits on a graph

MULTIPLE CHOICE: Use the graph above. The maximum profits for this monopolist can be represented by which area on the graph?

1. 0KBD
2. 0HCX
3. HKBN
4. 0HNV

 

MULTIPLE CHOICE: Use the graph above. What are the profits earned by this monopolist at the profit maximizing level of output?

1. $ 2275
2. $ 1750
3. $ 4275
4. $ 525

Find the profit maximizing quantity, price, and profits, using the table of data below.

Demand Data Cost Data
Quantity
Price Demanded Output Total Cost
$5.5033$5.00
5.0044 6.00
4.5055 6.50
3.8566 7.50
3.3577 9.00
2.908811.00
2.509914.00

 

HOME

Lesson 10a