Consider a monopolistic market with a demand function Qª = 1000 – P, or equivalently P = 1000 – Qª. The monopolist's marginal cost and average cost at a production level are respectively 10000 MC = 4Q and АТС + 2Q

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter8: Monopoly
Section: Chapter Questions
Problem 4SQ
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Q)(a) What is the monopolist’s marginal revenue at a production level?

(b) What is the monopolist’s profit-maximizing output level?

(c) What is the profit that the monopolist can earn in equilibrium?

Consider a monopolistic market with a demand function
Qd = 1000 – P, or equivalently
P = 1000 – Qª.
The monopolist's marginal cost and average cost at a production level are respectively
10000
MC = 4Q
and
АТС
+ 2Q
%3D
Transcribed Image Text:Consider a monopolistic market with a demand function Qd = 1000 – P, or equivalently P = 1000 – Qª. The monopolist's marginal cost and average cost at a production level are respectively 10000 MC = 4Q and АТС + 2Q %3D
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