Question

In: Economics

A monopolist has a demand curve given by P = 92 - 8Q and a total cost curve given by TC = 60Q.

The associated marginal cost curve is MC = 60. What is the monopolist's marginal revenue curve?
1. MR = 70 - 8Q
2. MR = 92 - 16Q
3. MR = 70 - 8Q
4. MR = 56 - Q
5. none of the above

And what is the monopolist's profit maximizing quantity?
1. 2
2. 6
3. 18
4. 9
5. none of the above

And what price will the monopolist charge?
1. 50
2. 76
3. 9
4. none of the above

And how much economic profit will the monopolist earn?
1. 36
2. 32
3. 90
4. d. 162
5. e. none of the above

Expert Solution

P=92-8Q

TR=PQ

TR=92Q-8Q^2

MR=d(TR)/dQ

MR=92-16Q

MC=60

At equilibrium MR=MC

92-16Q=60

16Q=32

Q=2

P=92-8(2)

P=76

A.Answer-B

B.Answer-A

C.Answer-B

D.For finding out economic profit we need data of implicit cost as well which is not given.

Answer-E

Rahul Sunny answered 2 years ago

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