Tangy Tangerines is a monopolistic firm in the market for tangerines. The following equations describe the demand for, and the cost ofproducing tangerines, where Q is output measured in thousand pounds, and P is price per pound.Demand: P 59-3QMarginal Cost: MC = 3 + QTotal Cost: TC = 4 + 3Q+0.50²The monopolist will charge what price and earn what profit?Price $35 and Profit-$220 thousand.Price$19 and Profit $53 thousand. *Price $8 and Profit=$220 thousand.Price $19 and Profit= $14 thousand.

Inverse demand function: P=59-3QThe marginal cost function of monopolist: The total cost function:…

Answered: Tangy Tangerines is a monopolistic firm…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If the price is greater than Actual total cost, does the monopolistic firm makes a profit, loss, or break-even?
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