Firm D is a monopolist that faces a market with inverse demand given by: P = 120-4Q Where Q is Firm D's output level. Firm D's total cost function is given by: TC(Q)= 11Q +42 Assuming that Firm D can perfectly (1st degree) price discriminate, what is Firm D's profit maximizing output level, Q (Hint: Because Firm D can perfectly price discriminate, its Marginal Revenue function is equivalent to inverse demand
Firm D is a monopolist that faces a market with inverse demand given by: P = 120-4Q Where Q is Firm D's output level. Firm D's total cost function is given by: TC(Q)= 11Q +42 Assuming that Firm D can perfectly (1st degree) price discriminate, what is Firm D's profit maximizing output level, Q (Hint: Because Firm D can perfectly price discriminate, its Marginal Revenue function is equivalent to inverse demand
Chapter8: Monopoly
Section: Chapter Questions
Problem 7SQP
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