A monopolist has an inverse demand curve given by p(y) = 12 − y and a cost curve given by c(y) = 3y. 1. Find the marginal revenue and marginal cost functions. 2. Find the optimal price and quantity for the monopolist. 3. Find the optimal price and quantity if the market is competitive. Note that in the competitive market firm produce where MC=AC.
A monopolist has an inverse demand curve given by p(y) = 12 − y and a cost curve given by c(y) = 3y. 1. Find the marginal revenue and marginal cost functions. 2. Find the optimal price and quantity for the monopolist. 3. Find the optimal price and quantity if the market is competitive. Note that in the competitive market firm produce where MC=AC.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter9: Monopoly
Section: Chapter Questions
Problem 6SQ
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A monopolist has an inverse demand curve given by p(y) =
12 − y and a cost curve given by c(y) = 3y.
1. Find the marginal revenue and marginal cost functions.
2. Find the optimal price and quantity for the monopolist.
3. Find the optimal price and quantity if the market is competitive. Note that in the competitive
market firm produce where MC=AC.
4. Calculate the
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