Question
Consider a situation where Bubuche Ltd is the only producer in the Industry and the market demand curve for the producer is given by;Q =
Consider a situation where Bubuche Ltd is the only producer in the Industry and the market demand curve for the producer is given by;Q = 260-0.5P. This firm has a total cost that can be expressed as; TC = 100Q + Q^2 + 50. i. Given the above information, what is this monopolist's profit maximizing price and output? ii.Given the above information , calculate this single price monopolist's profit. iii. At the profit maximizing quantity, what is this monopolist's average total cost of production (ATC)? iv. What is the monopolist's efficient price and output? v. Calculate the profit efficient level,given the answers in (4) above.
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