Suppose that marginal cost, and thus market supply, for the industry is given by P=2Qs + 4. The market demand curve is QD = 28-1/4P. A. Determine the equilibrium price and quantity in a competitive market. B. Determine the quantity the monopolist will produce and the price it will charge. C. Suppose that the marginal external cost is $3. Determine the quantity the monopolist will produce and the price it will charge.

Suppose that marginal cost, and thus market supply, for the industry is given by P=2Qs + 4. The market demand curve is QD = 28-1/4P. A. Determine the equilibrium price and quantity in a competitive market. B. Determine the quantity the monopolist will produce and the price it will charge. C. Suppose that the marginal external cost is $3. Determine the quantity the monopolist will produce and the price it will charge.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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