Question
Consider a monopolist who faces the following demand function Q = 80- P/2 ( 2 is divided by the whole 80-P) The cost function of
Consider a monopolist who faces the following demand function Q = 80- P/2 ( 2 is divided by the whole 80-P) The cost function of the monopolist is C = 10+2Q2
1. Find the profit maximising price and quantity.
2. Find the consumer surplus and producer surplus.
3. Suppose the government sets a price ceiling of P = 70. How would this affect the profit?
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International Management Culture, Strategy and Behavior
Authors: Fred Luthans, Jonathan Doh
10th edition
1259705072, 1259705076, 978-1259705076
