Question
Consider a monopolist who faces a (inverse) market demand curve of P = 200 - 5Q. The firm has a total cost function of TC
Consider a monopolist who faces a (inverse) market demand curve of P = 200 - 5Q. The firm has a total cost function of TC = 300 + 100Q + 5Q2 (which means that their marginal costs are MC = 100 + 10 Q)
Find the profit maximizing monopoly price and quantity.
If the industry was perfectly competitive, what would be the market price and quantity?
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Microeconomics
Authors: David Laibson, John List
Global Edition 1st Edition
1292079576, 978-1292079578
