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I got most of these problems wrong in a recent quiz. I don't want to fail my final. Can someone please teach me, step my
I got most of these problems wrong in a recent quiz. I don't want to fail my final. Can someone please teach me, step my step, what are the formulas and steps to solve these six questions? Thank you!
Type of firm: Monopoly Firm
The firm maximizes profits.
Average revenue (demand) curve: P = 360 0.04Q
Cost function: C = 60Q + 5000.
Marginal cost (MC) of production: $60.
Q=output
P=price in dollars
C=cost
- Calculate the profit-maximizing level of output produced by the monopoly firm.
- Calculate the market price that will be set by the monopolist at the profit-maximizing level of output.
- What will be the total profit earned by the profit-maximizing monopolist?
- Can you calculate the total market consumer surplus in this market?
- Can you calculate the total producer surplus in this market?
- Can you calculate the total economic surplus in this market? (Total economic surplus is a measure of total economic welfare generated by the market.)
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