2.
Quantity
(units) Price
(dollars) Marginal revenue
(dollars) Marginal cost
(dollars)
1 22 20 6
2 20 16 8
3 18 12 12
4 16 8 18
5 14 4 28
6 12 0 40
7 10 -4 54
8 8 -8 70
A single-price monopolist has the demand and marginal cost schedules given in the above table. What is the profit-maximizing level of output and price?