Question
Consider a monopolist whose total cost function is TC = Q3 - 30Q2 + 301Q, whose inverse demand function is P = 1501 - 30Q
Consider a monopolist whose total cost function is TC = Q3 - 30Q2 + 301Q, whose
inverse demand function is P = 1501 - 30Q where Q is output and P is price.
A. suppose this firm can practice perfect price discrimination. How much does it produce?
If the firm produces Q = 25, what is the lowest price it charges for any unit and what are its
profits?
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Introduction to Behavioral Economics
Authors: David R. Just
1st edition
0470596228, 978-0470596227
