Question 1 ( A monopolist sells Soma at the same price into two different markets. The inverse demand fo Soma in market #1 is denoted p1(q) = 15 – q. The demand for Soma in market #2 is given bị D2(p) = 80 – 3p. Assume the monopolist's cost function is C(q) = log(1 +q), where q represent the total quantity produced. (Note: (1) log denotes natural logarithm; (2) Round all answers to 2 decimal places. %3D 1. What is the profit maximizing quantity for the monopolist?
Question 1 ( A monopolist sells Soma at the same price into two different markets. The inverse demand fo Soma in market #1 is denoted p1(q) = 15 – q. The demand for Soma in market #2 is given bị D2(p) = 80 – 3p. Assume the monopolist's cost function is C(q) = log(1 +q), where q represent the total quantity produced. (Note: (1) log denotes natural logarithm; (2) Round all answers to 2 decimal places. %3D 1. What is the profit maximizing quantity for the monopolist?
Chapter8: Monopoly
Section: Chapter Questions
Problem 7SQP
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Transcribed Image Text:Question 1 (
A monopolist sells Soma at the same price into two different markets. The inverse demand for
Soma in market #1 is denoted p1(g) = 15 – q. The demand for Soma in market #2 is given by
D2(p) = 80 – 3p. Assume the monopolist's cost function is C(q) = log(1 + q), where q represents
the total quantity produced.
(Note: (1) log denotes natural logarithm; (2) Round all answers to 2 decimal places.)
1. What is the profit maximizing quantity for the monopolist?
1
Answer:.
Justification:
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