All 100 consumers are alike and each has a demand curve for a monopolist's product of q= 5-0.5p. The cost of production C(Q) =500+0.5Q. Let the monopolist charge a price of $r per unit purchased and a subscription fee of $F that must be paid by each purchaser. Find the r and F that maximize profits?

All 100 consumers are alike and each has a demand curve for a monopolist's product of q= 5-0.5p. The cost of production C(Q) =500+0.5Q. Let the monopolist charge a price of $r per unit purchased and a subscription fee of $F that must be paid by each purchaser. Find the r and F that maximize profits?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter9: Monopoly

Section: Chapter Questions

Problem 5SQ

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