A monopolist faces a market demand curve given by QD= 100 – P/3 and has a...

A monopolist faces a market demand curve given by Q^D= 100 – P/3 and has a cost function described by C = 30Q +1.5Q². Solve for the monopolist’s profit maximizing output and price.
With reference to question 4 above, suppose the demand facing the monopolist increases to Q^D= 120 – P/2. Solve for the new profit maximizing values of price and quantity. Describe how the two answers differ and explain those differences in terms of the demand change.
The market for coats is perfectly competitive with market supply given by Q^S= 2500 + 40P and market demand given by Q^D given by Q^D= 7500 – 10P. Solve for the equilibrium values of price and quantity. Calculate the values of elasticity of demand and elasticity of supply at the equilibrium.

Expert Solution

Rahul Sunny answered 7 months ago

A monopolist faces a market demand curve of q=100-p. The monopolist’s cost function is given by...

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