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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International Marketing And Export Management
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
8th Edition
1292016922, 978-1292016924
