Suppose that a monopolist has a constant marginal cost curve. That is, for each unit of output that the monopolist produces, it costs an additional $30$⁢30. The monopolist's marginal revenue is MR=120−6QMR=120−6⁢Q, where Q is the quantity produced. The demand curve is P=120−3QP=120−3⁢Q.   What is the monopolist's profit-maximizing output and price?

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter8: Monopoly
Section: Chapter Questions
Problem 10SQP
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Suppose that a monopolist has a constant marginal cost curve. That is, for each unit of output that the monopolist produces, it costs an additional $30$⁢30. The monopolist's marginal revenue is MR=120−6QMR=120−6⁢Q, where Q is the quantity produced. The demand curve is P=120−3QP=120−3⁢Q.

 

What is the monopolist's profit-maximizing output and price?
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