The graph below shows the demand and marginal cost curves for the monopolist Mr. Peanut. a. Draw the marginal revenue curve. Plot only the endpoints of the graph below. Costs and revenues 140 120 100 80 60 40 20 0 10 20 30 40 Quantity per period D MC 50 60 Tools marginal revel b. What are the values of the profit-maximizing output and price? Output Price: $ c. What are the values of output, price and total revenue when the firm's total revenue is maximized? Output Price: $ Total revenue: $

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Monopoly Market

When a company and its products dominate a sector or an industry, it is termed a monopoly. When a firm and its products control a market, then it is called a monopoly.