The function Q = 18 - P represent the market demand. The cost function of the monopolist is C = 2Q. (a) Find quantity, price and profit of the monopolist (b) Given the results of point (a), what is the firm's percentage mark-up of price over marginal cost?

Survey Of Economics
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ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter8: Monopoly
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The function Q = 18 - P represent the market demand. The cost function of the monopolist is C = 2 Q.
(a) Find quantity, price and profit of the monopolist
(b) Given the results of point (a), what is the firm's percentage mark-up of price over marginal cost?
Transcribed Image Text:The function Q = 18 - P represent the market demand. The cost function of the monopolist is C = 2 Q. (a) Find quantity, price and profit of the monopolist (b) Given the results of point (a), what is the firm's percentage mark-up of price over marginal cost?
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