A monopolist faces the demand curve P = 18 – Q, where P is measured in rands per unit and Q in thousands of units. The monopolist has a constant average cost of R6 per unit. 1.  What are the monopolist’s profit-maximising price and quantity and what is its resulting profit?

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter8: Monopoly
Section: Chapter Questions
Problem 10SQP
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A monopolist faces the demand curve P = 18 – Q, where P is measured in rands per unit and Q in thousands of units. The monopolist has a constant average cost of R6 per unit.

1.  What are the monopolist’s profit-maximising price and quantity and what is its resulting profit? (8)

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