Question
The inhabitants of Bichy Catapln consume bottles of mineral water according to the demand function of D_((p))=1,000 - p. Where D_((p)) is the demanded quantity
The inhabitants of Bichy Catapln consume bottles of mineral water according to the demand function of D_((p))=1,000 - p. Where D_((p)) is the demanded quantity of bottles of mineral water per year and p is the price of the bottle expressed in euros. The only distributor of this water from Bichy Catapln, Sin Burbujas acquires this water at c euros the bottle of its supplier Parmalatosa. Who is the only supplier of this water in the entire area and acts as a profit-maximizing monopoly and its production costs are zero.
a) What is the equilibrium price charged by the distributor Sin Burbujas? p*=
b)What is the amount of equilibrium that Sin Burbujas sells?
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