# a monopolist finds the demand curve to be linear, containing data points (q,p) of (100,125) and (20,165).a. how many items can he expect to sell, if the price p is \$100?b. what price should he charge to maximize the revenue?

Question
Asked Sep 26, 2019
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a monopolist finds the demand curve to be linear, containing data points (q,p) of (100,125) and (20,165).

a. how many items can he expect to sell, if the price p is \$100?

b. what price should he charge to maximize the revenue?

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Step 1

We know that the Demand Q is linear and passes through data points (100,125) and (20,165).

Demand equation can be calculated using slope-intercept form as shown below.

Step 2

Total revenue and Marginal revenue can be calculated as shown below.

Step 3

In monopoly, P is always greater than MR ie P>MR

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