Suppose that a profit-maximizing monopolist faces a demand curve of P = 240 – 4Q, a marginal revenue of P = 240 – 80 cost of 8Q, and an average total cost of 4Q. a. What quantity will the monopolist supply? b. What price will the monopolist charge? c. How much revenue will the monopolist make at the profit maximizing quantity? d. What is the monopolist's total cost at the profit maximizing quantity?
Suppose that a profit-maximizing monopolist faces a demand curve of P = 240 – 4Q, a marginal revenue of P = 240 – 80 cost of 8Q, and an average total cost of 4Q. a. What quantity will the monopolist supply? b. What price will the monopolist charge? c. How much revenue will the monopolist make at the profit maximizing quantity? d. What is the monopolist's total cost at the profit maximizing quantity?
Chapter8: Monopoly
Section: Chapter Questions
Problem 5SQ
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ISBN:
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Author:
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Publisher:
Cengage Learning