Suppose that the demand is given by P = a bQ, marginal revenue is MR = a

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Suppose that the demand is given by P = a −bQ, marginal revenue is MR = a − 2bQ, and marginal cost is equal to zero.

a. What are the competitive price and output?

b. What is the consumer surplus?

c. What are the monopoly price and output?

d. What is themonopoly profit?

e. What is the consumer surplus?

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Sports Economics

ISBN: 9780521876612

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Authors: Roger D. Blair

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Suppose that the demand is given by P = a bQ, marginal revenue is MR = a

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