A monopolist faces the demand curve Q(P ) = 50 − P 2 . The firm can produce output with marginal costs MC(Q) = Q and no fixed costs. Hint for the following questions: if revenue is of the form R(Q) = (a − bQ)Q, then the derivative of revenue is a − 2bQ. (a) What is the profit maximizing price for the monopolist in this market? (b) What is the deadweight loss from monopoly in this market, compared to the efficient output that sets price equal to marginal cost?*Please fully explain out any math A monopolist faces the demand curve Q(P) = 50- 5. The firm can produceoutput with marginal costs MC(Q) = Q and no fixed costs. Hint for thefollowing questions: if revenue is of the form R(Q) = (a – bQ)Q, then the%3Dderivative of revenue is a – 26Q.(a) What is the profit maximizing price for the monopolist in this market?(b) What is the deadweight loss from monopoly in this market, comparedto the efficient output that sets price equal to marginal cost?

Monopoly is a form of market where there is only one seller for a large number of buyers. The…

A monopolist faces the demand curve Q(P) = 50- . The firm can produce output with marginal costs MC(Q) = Q and no fixed costs. Hint for the following questions: if revenue is of the form R(Q) = (a – bQ)Q, then the derivative of revenue is a – 26Q. (a) What is the profit maximizing price for the monopolist in this market? (b) What is the deadweight loss from monopoly in this market, compared to the efficient output that sets price equal to marginal cost?

A monopolist faces the demand curve Q(P) = 50- . The firm can produce output with marginal costs MC(Q) = Q and no fixed costs. Hint for the following questions: if revenue is of the form R(Q) = (a – bQ)Q, then the derivative of revenue is a – 26Q. (a) What is the profit maximizing price for the monopolist in this market? (b) What is the deadweight loss from monopoly in this market, compared to the efficient output that sets price equal to marginal cost?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter25: Monopoly

Section: Chapter Questions

Problem 14E

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Question

A monopolist faces the demand curve Q(P ) = 50 − P 2 . The firm can produce output with marginal costs MC(Q) = Q and no fixed costs. Hint for the following questions: if revenue is of the form R(Q) = (a − bQ)Q, then the
derivative of revenue is a − 2bQ.
(a) What is the profit maximizing price for the monopolist in this market?
(b) What is the deadweight loss from monopoly in this market, compared
to the efficient output that sets price equal to marginal cost?

*Please fully explain out any math

A monopolist faces the demand curve Q(P) = 50- 5. The firm can produce
output with marginal costs MC(Q) = Q and no fixed costs. Hint for the
following questions: if revenue is of the form R(Q) = (a – bQ)Q, then the
%3D
derivative of revenue is a – 26Q.
(a) What is the profit maximizing price for the monopolist in this market?
(b) What is the deadweight loss from monopoly in this market, compared
to the efficient output that sets price equal to marginal cost?

Defintion Defintion Curve that represents the graphical relationship between the total supply of goods and services and the price level in the economy. When the price level increases, producers tend to supply more of a product in the market to earn a higher revenue or vice versa.

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