monopolist is selling a product with a linear demand curve with a vertical intercept of P=10 dollars (a price above which no one will buy the product) and a horizontal intercept of 20 thousand (the amount people would consume of the product were free). The product has zero marginal cost of zero (e.g ownloadable software). he profit-maximizing monopolist will set a price equal to dollars, produce and sell a quantity of thousand units, and will earn revenue of thousand dollars.
monopolist is selling a product with a linear demand curve with a vertical intercept of P=10 dollars (a price above which no one will buy the product) and a horizontal intercept of 20 thousand (the amount people would consume of the product were free). The product has zero marginal cost of zero (e.g ownloadable software). he profit-maximizing monopolist will set a price equal to dollars, produce and sell a quantity of thousand units, and will earn revenue of thousand dollars.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter9: Monopoly
Section: Chapter Questions
Problem 15SQ
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