2. Suppose you are a monopolist in the market for a specific video game. Your demand curve...

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2. Suppose you are a monopolist in the market for a specific video game. Your demand curve is given by P = 80 − Q/2; your marginal cost curve is MC = Q. Your fixed costs equal $400. (LO4, LO5)

a. Graph the demand and marginal cost curves.

b. Derive and graph the marginal revenue curve.

c. Calculate and indicate on the graph the equilibrium price and quantity.

d. What is your profit?

e. What is the level of consumer surplus?

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Principles Of Microeconomics

ISBN: 9781264250387,9781264250448

8th Edition

Authors: Robert H. Frank , Ben Bernanke , Kate Antonovics , Ori Heffetz

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Question Posted: Nov 08, 2024 09:00 AM

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2. Suppose you are a monopolist in the market for a specific video game. Your demand curve...

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Principles Of Microeconomics

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