MonopolyNote: You can, but don't have to provide your calculations below (digitally in the text fieldbelow!). In any case, please provide your solutions!a) Explain the difference between the behaviour of a monopolist and a firm in competition.(5P)b) A monopolist has the cost function C(Q)=10Q+1. Let market demand be given by Qp=400-10p.i) What is the profit-maximising quantity of output? (3P)ii) What is the equilibrium price? (3P)iii) Calculate the average cost. Compare the average cost and marginal cost and discusswhether many small firms could also compete fully in this market with the above costfunction. (4P)

Market structure refers to the different markets with different characteristics. Characteristics of…

a) Explain the difference between the behaviour of a monopolist and a firm in competition. (5P) b) A monopolist has the cost function C(Q)=10Q+1. Let market demand be given by QD=400- 10р. i) What is the profit-maximising quantity of output? (3P) ii) What is the equilibrium price? (3P) iii) Calculate the average cost. Compare the average cost and marginal cost and discuss whether many small firms could also compete fully in this market with the above cost function. (4P)

a) Explain the difference between the behaviour of a monopolist and a firm in competition. (5P) b) A monopolist has the cost function C(Q)=10Q+1. Let market demand be given by QD=400- 10р. i) What is the profit-maximising quantity of output? (3P) ii) What is the equilibrium price? (3P) iii) Calculate the average cost. Compare the average cost and marginal cost and discuss whether many small firms could also compete fully in this market with the above cost function. (4P)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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