The demand and total cost functions for a monopoly firm are: Q(P) = 39.5 – 0.5P TC(Q) = 60 – Q + 0.5 Q2 What are the profit maximising QM and PM for this firm? What is the firm’s profit πM?
The demand and total cost functions for a monopoly firm are: Q(P) = 39.5 – 0.5P TC(Q) = 60 – Q + 0.5 Q2 What are the profit maximising QM and PM for this firm? What is the firm’s profit πM?
Chapter25: Monopoly
Section: Chapter Questions
Problem 10E
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Q(P) = 39.5 – 0.5P
TC(Q) = 60 – Q + 0.5 Q2
What are the profit maximising QM and PM for this firm?
What is the firm’s profit πM?
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What would be the socially optimal Q* and P* (round to 1 decimal place if needed
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