A monopolist faces the following demand curve and total cost curve for its product: Demand curve: P = 200 - Q Total cost curve: TC = 20Q a. Write the equation for the total revenue function in terms of Q. b. Write the equation for the marginal revenue function. c. What is the marginal cost?
A monopolist faces the following demand curve and total cost curve for its product: Demand curve: P = 200 - Q Total cost curve: TC = 20Q a. Write the equation for the total revenue function in terms of Q. b. Write the equation for the marginal revenue function. c. What is the marginal cost?
Chapter8: Monopoly
Section: Chapter Questions
Problem 5SQ
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Question
A monopolist faces the following demand curve and total cost curve for its product: Demand curve: P = 200 - Q
Total cost curve: TC = 20Q
a. Write the equation for the total revenue function in terms of Q.
b. Write the equation for the marginal revenue function.
c. What is the marginal cost?
d. What is the profit-maximizing quantity for the monopolist?
e. What is the profit maximizing price?
f. What is the profit for the monopolist as a result?
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