Problems about monopolies? (Economics)?

Posted on 2013-11-21 17:47:00 in Economics by EINSAMKEIT

Joe (an entrepreneur) can sell 5 units of output at a price of $100, but must reduce price to $90 in order to sell 6 units. Joe does not price discriminate. Answer the questions based on this information.



1. Joe is / is not a price taker.



2. Total revenue for 6 units of output is _______ dollars.



3. Marginal revenue for the 6th unit of output is _________dollars.



4. Average revenue for 6 units of output is _________ dollars.



This assignment is specific to monopolies. I did other problems but I was really stuck on these. Thanks in advance!

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