Consider a monopolist facing a direct demand function qd= 23-1/2 p. The firm's marginal cost is given by MC= 10-4q+q². a) Give a brief intuitive explanation of an indirect demand function. b) Find the indirect demand function from the specific direct demand function given above. c) Find the monopoly price and output.

Consider a monopolist facing a direct demand function qd= 23-1/2 p. The firm's marginal cost is given by MC= 10-4q+q². a) Give a brief intuitive explanation of an indirect demand function. b) Find the indirect demand function from the specific direct demand function given above. c) Find the monopoly price and output.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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