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)

50

B)

75

C)

45

D)

50

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:

A)

576

B)

200

C)

1,200

D)

364

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:

A)

256

B)

512

C)

128

D)

26