Suppose the market for kiwis has a demand curve of the form: Qd = 200-2Pd And that the costs of the monopoly producer of kiwis are determined by Total Cost (Q) = Variable Cost (Q) + Fixed Cos C (Q) = Q² + 100. That is, its marginal cost will be: MgC (Qs) = 2Qs = Ps a) If the monopolist's marginal revenue is Img = 100-Q, calculate the PRICE that would maximize the monopolist's profits. b) Find the producer surplus (monopolist).

Suppose the market for kiwis has a demand curve of the form: Qd = 200-2Pd And that the costs of the monopoly producer of kiwis are determined by Total Cost (Q) = Variable Cost (Q) + Fixed Cos C (Q) = Q² + 100. That is, its marginal cost will be: MgC (Qs) = 2Qs = Ps a) If the monopolist's marginal revenue is Img = 100-Q, calculate the PRICE that would maximize the monopolist's profits. b) Find the producer surplus (monopolist).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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