The Spacing Guild has a monopoly on space transport. They sell tickets (Q) for seats on starships for interstellar travel at a per-ticket price of P. All tickets cost the same. If the Marginal Cost for each seat is $16 and Market demand is Q=404- 5P, what is the MARGINAL REVENUE the Guild gets from the 25th ticket?

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter8: Monopoly
Section: Chapter Questions
Problem 9SQP
icon
Related questions
Question

The Spacing Guild has a monopoly on space transport. They sell tickets
(Q) for seats on starships for interstellar travel at a per-ticket price of P. All
tickets cost the same.


If the Marginal Cost for each seat is $16 and Market demand is Q=404-
5P, what is the MARGINAL REVENUE the Guild gets from the 25th
ticket?

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Profit Maximization
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Survey Of Economics
Survey Of Economics
Economics
ISBN:
9781337111522
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Micro Economics For Today
Micro Economics For Today
Economics
ISBN:
9781337613064
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Economics For Today
Economics For Today
Economics
ISBN:
9781337613040
Author:
Tucker
Publisher:
Cengage Learning
Microeconomics: Principles & Policy
Microeconomics: Principles & Policy
Economics
ISBN:
9781337794992
Author:
William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:
Cengage Learning
Economics:
Economics:
Economics
ISBN:
9781285859460
Author:
BOYES, William
Publisher:
Cengage Learning
Principles of Microeconomics
Principles of Microeconomics
Economics
ISBN:
9781305156050
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning