Use a schedule when curves are replaced by numbers
The rule is to compare additions, not totals. For quantities 1 through 4, a monopolist’s marginal revenues are $80, $60, $40, and $20. Marginal cost is $30, and the demand price at three units is $60. The profit-maximizing price is $30 $45 $50 $60 $75 $60 The third unit adds $40 of revenue against $30 […]
A monopolist has no independent supply curve
Quantity depends on both demand and cost. A monopoly has no independent supply curve because it never changes output when cost conditions change it always produces at minimum average total cost its price is fixed independently by government its marginal cost cannot be measured price-output choices depend jointly on demand and cost price-output choices depend […]
