Suppose the demand curve for a monopolist is QD = 47,000 - 50 P, and the...

Suppose the demand curve for a monopolist is QD = 47,000 - 50 P, and the marginal revenue function is MR = 940 - 0.04Q. The monopolist's Marginal Cost = 40 + 0.02Q and its Total Cost = 250,000 + 40Q + 0.01Q2.

a. Find the monopolist's profit-maximizing output and price.

b. calculate the monopolist's profit/losses, if any.

c. What is the Lerner Index for this industry at the monopolist's profit-maximizing output and price

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Rahul Sunny answered 2 years ago

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