6a. Consider the monopolist that faces the following market demand and total cost functions: P Q = 30 - TC= 100-5Q+Q? i. Find the profit-maximizing price (Pm) and output (Qm) for this firm. At this price-quantity combination, how much is consumer surplus? How much economic profit is this monopoly eaming?

ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter9: Monopoly
Section: Chapter Questions
Problem 3.4P
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6a. Consider the monopolist that faces the following market demand and total cost functions:
P
Q = 30 –
3
TC= 100-5Q+Q?
i. Find the profit-maximizing price (Pm) and output (Qm) for this firm. At this price-quantity
combination, how much is consumer surplus? How much economic profit is this monopoly
earning?
Transcribed Image Text:6a. Consider the monopolist that faces the following market demand and total cost functions: P Q = 30 – 3 TC= 100-5Q+Q? i. Find the profit-maximizing price (Pm) and output (Qm) for this firm. At this price-quantity combination, how much is consumer surplus? How much economic profit is this monopoly earning?
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