Chapter 9 - Monopoly OPENSuppose the following are true for a monopolist market:P = 450 - 16QMR = 450-32QMC = 55+ 37QATC=55+ 18.5QWhat is the profit maximizing Price and Quantity?Q* =P = SHow much profit did the monopolist earn?Profit = SO Eahp*a

Given, P = 450 - 16Q MR = 450 - 32Q MC = 55 + 37 ATC = 55+ 18.5Q

oly Suppose the following are true for a monopolist market: P = 450-16Q MR = 450-32Q Q* = MC = 55 +37Q ATC=55+ 18.5Q What is the profit maximizing Price and Quantity? P* = $ How much profit did the monopolist earn? Profit = S C OPEN JU! #E a hp

oly Suppose the following are true for a monopolist market: P = 450-16Q MR = 450-32Q Q* = MC = 55 +37Q ATC=55+ 18.5Q What is the profit maximizing Price and Quantity? P* = $ How much profit did the monopolist earn? Profit = S C OPEN JU! #E a hp

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Chapter 9 - Monopoly OPEN
Suppose the following are true for a monopolist market:
P = 450 - 16Q
MR = 450-32Q
MC = 55+ 37Q
ATC=55+ 18.5Q
What is the profit maximizing Price and Quantity?
Q* =
P = S
How much profit did the monopolist earn?
Profit = S
O E
a
hp
*
a

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