A monopolist has a total cost given by 10.Q+28 and faces a demand curve given by -5.Q+141
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Question:
A monopolist has a total cost given by 10.Q+28
and faces a demand curve given by -5.Q+141
What is the profit-maximizing quantity the monopolist supplies the market?
What is the profit-maximizing price the monopolist sets in this market?
Suppose instead of a monopoly, the market is served by a bunch of perfectly competitive firms each with the same cost structure as the monopolist
What is the profit-maximizing quantity these firms supply the market?
What is the profit-maximizing price in this market?
What is the dead weight loss from having a monopoly versus a perfectly competitive market?
What is the long run decision of some of the firms in the competitive industry? More firms will enter or Some or all firms will exit
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