A monopolist is facing the following demand schedule P=24-3Q. That is, Q=0 implies P=24, then Q=1...

A monopolist is facing the following demand schedule P=24-3Q. That is, Q=0 implies P=24, then Q=1 implies P=21, and Q=2 implies P=18, and so one. Fixed costs will be neglected in this analysis. The marginal cost is constant and equal to 6 for every unit produced. How do I find the quantity produced and the amount of maximum profits? How do I find the Price and quantity to yield the efficient solution? How do I find what happens if a new competitor enters the market and the marginal cost the new competitor is constant and always equal to 5? I mean, in this latter case could you tell us the Nash equilibrium?

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Rahul Sunny answered 3 months ago

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