Distinguish between public monopoly and private monopolist. How does public monopoly firm makes its price and output decisions? Illustrate.
The following table shows the demand curve of a monopolist firm who produces at a constant marginal cost of Rs 10:
| Price (in ₹) | Quantity |
|---|---|
| 18 | 0 |
| 16 | 4 |
| 14 | 8 |
| 12 | 12 |
| 10 | 16 |
| 8 | 20 |
| 6 | 24 |
| 4 | 28 |
| 2 | 32 |
| 0 | 36 |
Calculate the firm's marginal curve.
What are the firm's profit maximizing output and price?
What is its profit?
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