Question
1. Suppose ACME has a monopoly in the market for cellphones. In order to produce X cellphones, it costs Intel C(x)=2x^2. Marginal cost is MC(x)=4x.
1. Suppose ACME has a monopoly in the market for cellphones. In order to produce X cellphones, it costs Intel C(x)=2x^2. Marginal cost is MC(x)=4x. Quantity Demanded of X is QD(x)=12-.25p.
a. (5 pts) In a generic way, how does one find total revenue? (hint find price)
b. (5 pts) What level of output is profit maximizing?
c. (5 pts) What is the profit maximizing price?
d. (5 pts) What quantity maximizes total surplus?
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The Future Of Auditing
Authors: David Hay
1st Edition
1138477087, 9781138477087
