Question
Consider a single pricing monopolist with demand function given by P = 300 - 0.5Q, marginal cost function given by MC = 100 + Q
Consider a single pricing monopolist with demand function given by P = 300 - 0.5Q, marginal cost function given by MC = 100 + Q and no fixed cost, compute the optimal quantity, price, consumer surplus and producer surplus of the monopolist. Support your answers with a market diagram and discuss whether the monopolist is efficient. Justify your answers.
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Modern Principles of Economics
Authors: Tyler Cowen, Alex Tabarrok
3rd edition
1429278390, 978-1429278416, 1429278412, 978-1429278393
