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In: Economics

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

  1. 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

Solutions

Expert Solution

Please give rating it will appreciable, thank you

the solution of the above question is,

B - Graph

c) Consumer and Producer Surplus


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