Question
A monopolist produces golf balls. Assume that the demand for golf balls is P=100-Q and its MC=10. a) Find the optimal monopoly price and quantity
A monopolist produces golf balls. Assume that the demand for golf balls is P=100-Q and its MC=10.
a) Find the optimal monopoly price and quantity when a unique market price is charged (calculation is required here.)
b) Illustrate the inverse demand, marginal cost, marginal revenue, optimal price, and quantity in a figure (no calculation required, only illustration.)
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Managerial Economics and Organizational Architecture
Authors: James Brickley, Clifford W. Smith Jr., Jerold Zimmerman
6th edition
73523143, 73523149, 978-0073523149
