Temple University
Economics 52
Monopoly
Name
Social Security Number
1. The demand curve for Fibonacci Family Pizza, which has the monopoly franchise on the campus of the State University, is given by
Price
Quantity Demanded
Total Revenue
Marginal Revenue
20
0
18
1
16
2
32
14
3
42
10
12
4
48
6
5
50
Complete the total revenue and marginal revenue columns.
2. The cost function for the family business is:
Quantity
Total Cost
Marginal Cost
Average Cost
--
8
24
34
11 1/3
64
12.8
Complete the marginal cost and average cost columns.
3. How much output should the Fibonaccis produce? 3, where MR=MC
4. What price should they charge? 14
5. What profit will they earn at that price and output? 8