Consider a monopolist facing an inverse demand function p(q) = 15 – 3q, where q denotes units of output. Assume that the total cost of this firm is TC(q) = 5 + 4q. i. Find the monopolists marginal revenue and its marginal cost Find the monopolists optimal output q", price, and profits Assume now that the market operated under perfect competition. Compute the equilibrium output, price, and profits i. iii.

Consider a monopolist facing an inverse demand function p(q) = 15 – 3q, where q denotes units of output. Assume that the total cost of this firm is TC(q) = 5 + 4q. i. Find the monopolists marginal revenue and its marginal cost Find the monopolists optimal output q", price, and profits Assume now that the market operated under perfect competition. Compute the equilibrium output, price, and profits i. iii.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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