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A monopolist faces the inverse demand for its output: P = 30 - Q. The monopolist also has a constant marginal and average cost of
A monopolist faces the inverse demand for its output: P = 30 - Q. The monopolist also has a constant marginal and average cost of $4/unit.
- What is the monopolist's profit-maximizing condition?
- What is the monopolist's profit-maximizing level of output and price?
- What is the monopolist's profit at this level of output?
- What is the consumer surplus?
- What would be the equilibrium if this market were perfectly competitive instead of a monopoly? What would the consumer surplus be in that case?
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
