Suppose you are a monopolist in the market for a specific Q video game. Your demand curve is given by P = 80 and I 2 your marginal cost curve is MC = Q. Your fixed cost is $400. i) Derive the marginal revenue curve. ii) Calculate the equilibrium price and quantity. iii) What is the profit?

Suppose you are a monopolist in the market for a specific Q video game. Your demand curve is given by P = 80 and I 2 your marginal cost curve is MC = Q. Your fixed cost is $400. i) Derive the marginal revenue curve. ii) Calculate the equilibrium price and quantity. iii) What is the profit?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose you are a monopolist in the market for a specific
Q
video game. Your demand curve is given by P
=
80-
-
and
2
your marginal cost curve is MC = Q. Your fixed cost is $400.
i) Derive the marginal revenue curve.
ii) Calculate the equilibrium price and quantity.
iii) What is the profit?

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