Derive the demand equation for the monopolist. Рпсе ($)(1per pack2418C126MCMRQuantity (packs)A50B100Please refer to the figure above. The monopolist will consider the market demand as itsown individual demand. Derive the demand equation for the monopolist.

Answered: Price ($) per pack 18 C 12 6. MC MR…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Derive the demand equation for the monopolist.

Рпсе ($)
(1
per pack
24
18
C
12
6
MC
MR
Quantity (packs)
A
50
B
100
Please refer to the figure above. The monopolist will consider the market demand as its
own individual demand. Derive the demand equation for the monopolist.

Expert Solution

Step 1

In a market, when a producer wants to analyze the behavior of the households or consumers, he uses mathematical expressions to get standardized outcome at different price level. The generalize demand equation is:

$D = a + b P$

Where,

a is the quantity at zero price level
b is the responsiveness of people to the price
P is the price level

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