Question
A monopolist faces the following market demand curve: P = 200 - 0.5Q , where Q is units per year and P is $/unit. Marginal
A monopolist faces the following market demand curve:P = 200 - 0.5Q, whereQis units per year and P is $/unit. Marginal cost is given byMC = 4Q.
Answer the following questions.Please clearly indicate which question you are answering with the appropriate letter.
- (4points)What is the profit-maximizing price and quantity?
- (4points)What is the price elasticity of demand at this profit-maximizing price and quantity?
- (4points)What is the consumer surplus at this price and quantity?
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Business A Changing World
Authors: O. C. Ferrell, Geoffrey Hirt, Linda Ferrell
10th edition
1259179397, 978-1259179396
