HealthPill first rises, then falls. Low levels of output bring in relatively little total revenue, because the quantity is

low. High levels of output bring in relatively less revenue, because the high quantity pushes down the market price.
The total cost curve is upward-sloping. Profits will be highest at the quantity of output where total revenue is most

above total cost. The profit-maximizing level of output is not the same as the revenue-maximizing level of output,

which should make sense, because profits take costs into account and revenues do not.
224 9 • Monopoly

Quantity

Price

Total Revenue

Total Cost

Q

P

TR

TC

1

2

3

4

5

6

7

8

1,200 1,200

1,100 2,200

1,000 3,000

900

3,600

800

4,000

700

4,200

600

4,200

500

4,000

500

750

1,000

1,250

1,650

2,500

4,000

6,400

TABLE 9.2 Total Costs and Total Revenues of

HealthPill

Total revenue, though, is different. Since a monopolist faces a downward sloping demand curve, the only way it
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