Question
A monopolist faces the following demand curve, marginal revenue curve, total cost curve and marginal cost curve for its product: P = 100 - Q/2,
A monopolist faces the following demand curve, marginal revenue curve, total cost curve and marginal cost curve for its product: P = 100 - Q/2, MR = 100 - Q TC = 5Q, MC = 5
(a) Find the profit-maximizing price and quantity for this monopolist. At this level of price and quantity, find the corresponding profit and deadweight loss.
(b) If it is a competitive market instead, what would be the market equilibrium price and quantity? What would be the profit earned by each firm? Is there any deadweight loss? Why or why not?
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The Business of Tourism Management
Authors: John Beech, Simon Chadwick
1st edition
273688013, 273688014, 9781405871631 , 978-0273688013
