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1. Why, from an economic point of view, should antitrust action not be taken against all monopolies?
2. Given the information in the table below, complete the monopolist's marginal cost and marginal revenue schedules. Graph the demand, marginal cost, and marginal revenue curves, and find the profit-maximizing point of production. Assuming this monopolistic firm faces fixed costs of $10, and must charge the same price for all units sold, how much profit does it make?
QuantityProduced
TotalVariable
Marginal
and Sold
Price
Cost
Revenue
1
$12
$ 5
2
11
9
3
10
14
4
20
5
8
28
6
7
38
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