A monopolist faces a demand for Q = 18-2P where Q is the number/quantity of goods demanded (units). Monopolists have a constant average cost (AC) = 3 per unit.
Question:
a. From the information above, lower the equations of average revenue (AR), marginal revenue (MR), and marginal cost (MC)!
b. What is the amount of output that must be produced and the selling price per unit to reach the maximum profit and calculate the maximum profit!
c. What is the difference in price and output produced by the company compared to the price and output if the company operates in a perfectly competitive market?