A monopoly has a demand function of P=15-Q ($) and total cost function ofTC= 7Q ($) a.

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A monopoly has a demand function of P=15-Q ($) and total cost function ofTC= 7Q ($)

a. What is price and optimal quantity that gives the firm maximum profit? Using Lerner indicator (L) to identify market power of this firm?

b. What is price and optimal quantity for society (for perfect competitive market)? Identify dead-weight loss (DL) created by this firm?

Posted Date: Jun 23, 2024 10:00 AM

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A monopoly has a demand function of P=15-Q ($) and total cost function ofTC= 7Q ($) a.

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