Consider a Monopolist where the inverse market demand curve for the produce is given by P...

Consider a Monopolist where the inverse market demand curve for the produce is given by
P = 520 − 2Q. Marginal Cost: MC =100 + 2Q and Total Cost: 100 .50
2
TC = Q + Q +
[1 + 1 + 1 = 3]
Calculate:
(a) Profit Maximizing Price and Quantity.
(b) Single Price Monopolist Profit.
(c) At the profit maximizing quantity, what is the Average Total Cost (ATC) for the

Consider a Monopolist where the inverse market demand curve for the produce is given by
P = 520 − 2Q. Marginal Cost: MC =100 + 2Q and Total Cost: 100 Q+Q^2+50

Calculate:
(a) Profit Maximizing Price and Quantity.
(b) Single Price Monopolist Profit.
(c) At the profit maximizing quantity, what is the Average Total Cost (ATC) for the

Solutions

Expert Solution

Part (A)

monopolist maximizes profit when marginal revenu equals marginal cost

prift maximizing quantity is 25 units and price is 200

Part (B)

Part (C)

Rahul Sunny answered 1 year ago

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