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QUESTION 23 A monopolist faces the following market demand curve: P = 200 - 0.5Q , where Q is units per year and P is
QUESTION 23
- A monopolist faces the following market demand curve:P = 200 - 0.5Q, whereQis units per year and P is $/unit. Marginal cost is given byMC = 4Q.
- Answer the following questions.Please clearly indicate which question you are answering with the appropriate letter.
- (4points)What is the profit-maximizing price and quantity?
- (4points)What is the price elasticity of demand at this profit-maximizing price and quantity?
- (4points)What is the consumer surplus at this price and quantity?
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International Economics
Authors: Robert C. Feenstra, Alan M. Taylor
3rd edition
978-1429278515, 142927851X, 978-1319029517, 1319029515, 978-1429278447
