Question
a. (2021 Summer Final) Your mom is the monopoly supplier of jokes in (humorless) Ho Hum. She faces a demand curve and a marginal cost
a. (2021 Summer Final) Your mom is the monopoly supplier of jokes in (humorless) Ho Hum. She faces a demand curve and a marginal cost curve given by following equations
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Demand: Q = 86 0.17P jokes per day
Marginal Cost: MC = 63 dollars per joke
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Assume that jokes are perfectly divisible. Your profit-maximizing mom would set a price of [Answer] dollars per joke.
(In decimal numbers, with two decimal places, please.)
b. Continue with the last question. The price elasticity of demand at the profit-maximizing quantity is [Answer].
(In decimal numbers, with two decimal places, please.)
c. Continue with the last question. The markup at the profit-maximizing quantity is [Answer] percent.
(In decimal numbers, with two decimal places, please.)
d. Continue with the last question. The socially efficient quantity is [Answer] jokes.
(In decimal numbers, with two decimal places, please.)
e. Continue with the last question. Compared to the socially efficient quantity, monopoly pricing leads to a deadweight loss of [Answer] dollars per day.
(In decimal numbers, with two decimal places, please.)
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