4.Assume that a monopolist sells a product with the costfunction C = F + 20Q, where C is totał cost, F is a%3Dfixed cost, and Q is the level of output. The inversedemand function is P60 - Q, where P is the price in%3Dthe market. (i) How much profit does the firm earnwhen it charges the price that maximizes profit ?(ii) At what price will the firm earn zero economicprofits ?

In economics, an inverse demand function is the inverse function of a demand function. The inverse…

4. Assume that a monopolist sells a product with the cost function C = F + 20Q, where C is totał cost, F is a fixed cost, and Q is the level of output. The inverse demand function is P = 60 - Q, where P is the price in the market. (i) How much profit does the firm earn when it charges the price that maximizes profit ? (ii) At what price will the firm earn zero economic profits ?

4. Assume that a monopolist sells a product with the cost function C = F + 20Q, where C is totał cost, F is a fixed cost, and Q is the level of output. The inverse demand function is P = 60 - Q, where P is the price in the market. (i) How much profit does the firm earn when it charges the price that maximizes profit ? (ii) At what price will the firm earn zero economic profits ?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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