Question
Consider a monopolist facing the demand curve p=16-2q where p is price and q is quantity demanded. The monopolist's total cost curve is C=4q where
Consider a monopolist facing the demand curve p=16-2q where p is price and q is quantity demanded. The monopolist's total cost curve is C=4q where C is total cost. Then the monopolist's:
a) Profit maximizing level of output is 3
b) Profit maximizing price is 10
c) Maximized profit is 18
d) Marginal cost is 3
e) Own-price elasticity of demand is 0.5
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The Economics Of The Environment
Authors: Peter Berck, Gloria Helfand
1st Edition
978-0321321664, 0321321669
