A monopolist sells a good with network externalities.A continuum of (potential) consumers are uniformly located on the interval [0,1]. The utility of consumer i, located at x;, has utility U; = 2(n + 2)(100 x;) - p if she buys the good and 0 otherwise. - Find the quantity sold at price p = 594 in the stable equilibrium (with striclty positive consumption). Answer:
A monopolist sells a good with network externalities.A continuum of (potential) consumers are uniformly located on the interval [0,1]. The utility of consumer i, located at x;, has utility U; = 2(n + 2)(100 x;) - p if she buys the good and 0 otherwise. - Find the quantity sold at price p = 594 in the stable equilibrium (with striclty positive consumption). Answer:
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter13: Between Competition And Monopoly
Section: Chapter Questions
Problem 5DQ
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![A monopolist sells a good with network externalities.A continuum of (potential) consumers are uniformly located on the interval [0,1]. The utility of consumer
i, located at x;, has utility U; = 2(n + 2)(100 x;) - p if she buys the good and 0 otherwise.
-
Find the quantity sold at price p = 594 in the stable equilibrium (with striclty positive consumption).
Answer:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F35bc7cfb-e38c-45d6-8cb2-8c987ddfb016%2F36cb8a80-d29e-4a08-9004-6e3e9bc526a7%2F0tskup8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A monopolist sells a good with network externalities.A continuum of (potential) consumers are uniformly located on the interval [0,1]. The utility of consumer
i, located at x;, has utility U; = 2(n + 2)(100 x;) - p if she buys the good and 0 otherwise.
-
Find the quantity sold at price p = 594 in the stable equilibrium (with striclty positive consumption).
Answer:
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