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A monopolist has total costs TC(Q) = 32 + 10Q and faces market demand Q(P) = 40-2P. Solve for monopolist's output, price, profits and
A monopolist has total costs TC(Q) = 32 + 10Q and faces market demand Q(P) = 40-2P. Solve for monopolist's output, price, profits and consumer surplus when: (a)(5 pts) Price is unregulated. (b)(5 pts) Price is set equal to average total cost. (c)(5 pts) Price is set equal to marginal cost.
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To solve for the monopolists output price profits and consumer surplus under different scenarios well consider the given total cost function and market demand function Lets go through each case a Pric...
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Microeconomics
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
1st Edition
978-1464146978, 1464146977
