The accompanying table below shows the demand schedule facing a monopolist who produces at constan marginal cost of $5.
Price quatity
9 0
8 1
7 2
6 3
5 4
3 6
2 7
1 8
0 9
a) calculate the firm's revenue schedule
To calculate the firm's revenue schedule, we need to multiply the price by the quantity for each level of output.
Price Quanity Revenue
9 0 0
8 1 8
7 2 14
6 3 18
5 4 20
3 6 18
2 7 14
1 8 8
0 9 0
So, the firm's revenue schedule is as follows:
Price Quantity Revenue
9 0 0
8 1 8
7 2 14
6 3 18
5 4 20
3 6 18
2 7 14
1 8 8
0 9 0
This revenue schedule shows the amount of revenue the firm will receive at each level of output at the corresponding price.