4. A monopolist faces the demand curve: P = 1,200 – 0.2Q, and Cost: TC = 324,000 +300Q + 0.4Q 2. a. Determine the monopolist’s profit-maximizing output, price, and profit. b. List two different types of barriers to entry – one that is dependent on the Government and one type of barrier that is not – that would enable a monopoly to reach this outcome. c. Suppose that the monopolist losses its barrier to entry and this market becomes perfectly competitive. Assuming the same cost for all producers, find the long-run equilibrium output, price and profit
4. A monopolist faces the demand curve: P = 1,200 – 0.2Q, and Cost: TC = 324,000 +300Q + 0.4Q 2.
a. Determine the monopolist’s profit-maximizing output, price, and profit.
b. List two different types of barriers to entry – one that is dependent on the Government and one type of barrier that is not – that would enable a
c. Suppose that the monopolist losses its barrier to entry and this market becomes
d. Compute
e. Compute
Trending now
This is a popular solution!
Step by step
Solved in 6 steps with 5 images
