Consider a monopolist facing a demand curve P=120-Q. Its total cost function is C(Q)=30Q. Calculate the price the monopolist will charge.
Question 8 options:
A monopolist can produce at a constant average (and marginal) cost of AC = MC = $5. It faces a market demand curve given by Q = 53 — P. Caculate its profit
Question 9 options:
Suppose a second firm enters the market. Let Q1 be the output of the first firm and Q2 be the output of the second. Market demand is now given by
Q1 + Q2 = 53 – P.
The profit of each firm in a Cournot equilibrium would be
Question 10 options: