For a Monopolist, the inverse demand function is P=80 – Q (Or, the Demand function is...

For a Monopolist, the inverse demand function is P=80 – Q (Or, the Demand function is Q = 80 – P, if you prefer). The firm’s total cost function is 20 + 5Q + .5Q².
1. Identify profit maximizing quantity and price Q = _____, P = _____
2. Graph the relevant curves in the area provided (Hint: If you have difficulty drawing the graph, try plotting a couple of points along the curve)
3. Identify CS and PS in the graph Calculate CS and PS: CS = ________ PS = ___________
4. Calculate elasticity of demand at the profit maximizing price
5. Calculate profit

Expert Solution

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the solution of the above question is,

B - Graph

c) Consumer and Producer Surplus

Rahul Sunny answered 8 months ago

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