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Consider a monopolist who produces a good at zero cost and faces the following inverse demand function: Q< 120, Q > 120, 300 – Q, P = 540 – 3Q, where Pand Q denote price and quantity respectively. In what follows, round your answers to three decimal places if necessary. Monopolist's profit is maximised at P = 210 Q = 90

Consider a monopolist who produces a good at zero cost and faces the following inverse demand function: Q< 120, Q > 120, 300 – Q, P = 540 – 3Q, where Pand Q denote price and quantity respectively. In what follows, round your answers to three decimal places if necessary. Monopolist's profit is maximised at P = 210 Q = 90

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Consider a monopolist who produces a good at zero cost and faces the following inverse demand function: Q< 120, Q> 120, | 300 Q, P = 540 – 3Q, where P and Q denote price and quantity respectively. In what follows, round your answers to three decimal places if necessary. Monopolist's profit is maximised at P 210 Q 90 Suppose everything is the same as in part (a) except the inverse demand function – where the inequalities have just switched places. The new inverse demand function is 300 – Q, Q > 120, P = 540 – 3Q, Q< 120. Monopolist's profit is maximised at 270 Q 90
Transcribed Image Text:Consider a monopolist who produces a good at zero cost and faces the following inverse demand function: Q< 120, Q> 120, | 300 Q, P = 540 – 3Q, where P and Q denote price and quantity respectively. In what follows, round your answers to three decimal places if necessary. Monopolist's profit is maximised at P 210 Q 90 Suppose everything is the same as in part (a) except the inverse demand function – where the inequalities have just switched places. The new inverse demand function is 300 – Q, Q > 120, P = 540 – 3Q, Q< 120. Monopolist's profit is maximised at 270 Q 90
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