Question
The market demand for a monopoly firm is estimated to be: Q d = 100,000 500 P + 2 M + 5,000 P R where
The market demand for a monopoly firm is estimated to be:
Qd= 100,000 500P+ 2M+ 5,000PR
whereQdis quantity demanded,Pis price,Mis income, andPRis the price of a related good. The manager has forecasted the values ofMandPRwill be $50,000 and $20, respectively, in 2021. The average variable cost function is estimated to be
AVC= 520 0.03Q+ 0.000001Q2
Total fixed cost in 2021 is expected to be $4 million. The firm's profit is
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Authors: Jeffrey F Beatty, Susan S Samuelson
3rd Edition
0324537115, 9780324537116
