tiny slice of the entire market demand curve. In contrast, a monopoly perceives demand for its product in a market

where the monopoly is the only producer.

Total Cost and Total Revenue for a Monopolist

We can illustrate profits for a monopolist with a graph of total revenues and total costs, with the example of the

hypothetical HealthPill firm in Figure 9.4. The total cost curve has its typical shape that we learned about in

Production, Costs and Industry Structure, and that we used in Perfect Competition; that is, total costs rise and

the curve grows steeper as output increases, as the final column of Table 9.2 shows.

FIGURE 9.4 Total Revenue and Total Cost for the HealthPill Monopoly Total revenue for the monopoly firm called

HealthPill first rises, then falls. Low levels of output bring in relatively little total revenue, because the quantity is
{"source_file": "downloads\\business\\economics\\Microeconomics3e.pdf", "creationdate": "2022-12-07T14:15:44-06:00", "upload_timestamp": "2026-02-07T15:37:44.339247", "title": "Principles of Microeconomics 3e", "file_size_mb": 26.99, "batch_upload": true, "creator": "PDFMiner", "file_name": "Microeconomics3e.pdf", "source": "downloads\\business\\economics\\Microeconomics3e.pdf", "total_pages": 597, "uploaded_via": "batch_uploader", "producer": "Prince 14.2 (www.princexml.com)", "file_hash": "830b81f41611ac67a490444dbb5d6aed292224606965b06965b914443c93331a", "file_type": ".pdf", "moddate": "2022-12-07T14:23:05-06:00"}