Suppose that the market demand is: P = 24 – 3Q, where P is price
and Q is quantity demanded, and marginal revenue is: MR = 24 –
6Q.
The marginal cost is: MC = 6 and total fixed cost is 0.
a. If the market structure is monopoly, determine the profit
maximizing price and output for this monopolist and calculate its
economic profit or loss at the profit maximizing output.
b. If the market structure is perfect competition, determine...