The marginal cost of production is $4, and assume there is no fixed cost. The farmer is the only seller in the market so it will be a monopoly seller. Suppose the demand for the apple is p=32-2q. 1. What is the monopolist's optimal price 2. At this price, what is the buyer surplus? What is the seller surplus?
The marginal cost of production is $4, and assume there is no fixed cost. The farmer is the only seller in the market so it will be a monopoly seller. Suppose the demand for the apple is p=32-2q. 1. What is the monopolist's optimal price 2. At this price, what is the buyer surplus? What is the seller surplus?
Chapter8: Monopoly
Section: Chapter Questions
Problem 10SQP
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The marginal cost of production is $4, and assume there is no fixed cost. The farmer is the only seller in the market so it will be a
1. What is the monopolist's optimal
2. At this price, what is the buyer surplus? What is the seller surplus?
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