Lecture 8 Problems

Monopoly

Mansfield, Chpt 5, page 88, problem #4. a, b, c, (3 pts each) and graph (10 pts). Since this is such a simple exercise that demonstrates monopoly output and pricing decisions, I would like you to ALSO make a graph by plotting the data provided. This will add a visual representation of the decision process.

You will get more problems on monopoly in Lecture 10 problems.