A monopolist has a cost function c(q) = 5q+800 and faces aggregate demand q=3000-120p. Suppose first that monopolist sells q=400 units. The monopolist's revenue would be The monopolist profit would be The absolute value of the price elasticity of demand would be The consumer surplus would be
A monopolist has a cost function c(q) = 5q+800 and faces aggregate demand q=3000-120p. Suppose first that monopolist sells q=400 units. The monopolist's revenue would be The monopolist profit would be The absolute value of the price elasticity of demand would be The consumer surplus would be
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![Economics
A monopolist has a cost function c(q) = 5q+800 and faces aggregate demand
= 3000 - 120p.
q=
Suppose first that monopolist sells q=400 units.
The monopolist's revenue would be
The monopolist profit would be
The absolute value of the price elasticity of demand would be
The consumer surplus would be
Now suppose that the monopolist chooses q to maximize its profit.
The monopolist's revenue would be
The monopolist profit would be
The absolute value of the price elasticity of demand would be
The consumer surplus would be](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F450cfc39-a0b3-41ad-b01f-57c67b514b9d%2F9bf99908-accc-4f99-9b67-10b84566cef2%2Fx6wijg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Economics
A monopolist has a cost function c(q) = 5q+800 and faces aggregate demand
= 3000 - 120p.
q=
Suppose first that monopolist sells q=400 units.
The monopolist's revenue would be
The monopolist profit would be
The absolute value of the price elasticity of demand would be
The consumer surplus would be
Now suppose that the monopolist chooses q to maximize its profit.
The monopolist's revenue would be
The monopolist profit would be
The absolute value of the price elasticity of demand would be
The consumer surplus would be
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