Question
For legal reasons, only one firm is allowed to sell smartphones in a small country. The firm's marginal cost curve for smartphones is . There
For legal reasons, only one firm is allowed to sell smartphones in a small country. The firm's marginal cost curve for smartphones is . There are no fixed = 100 + 20 costs. The inverse demand curve is . P is the price in dollars and Q is = 500 30 the number of hundred thousand smartphones. a. What price will smartphones be sold for? b. How many smartphones will be sold? c. What will be the monopolist's profit? d. Find the consumer surplus. e. Now, suppose that there was a $80 per phone tax on the sale of smartphones. How many smartphones would be sold?
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