Suppose market demand for a product is given by the equation P = 20 – Q. For this market demand curve, marginal revenue is MR =
20 – 2Q.
1 If the marginal cost of producing this good is 0, what quantity would a profit-maximizing monopolist produce?
2 If the marginal cost of producing this good is 4, what quantity would a profit-maximizing monopolist produce?
3 If the marginal cost of producing this good is 0, what price would a profit-maximizing monopolist charge for the product?
4 If the marginal cost of producing this good is 4, what price would a profit-maximizing monopolist charge for the product?
5 If the marginal cost of producing this good is 0, how much total consumer surplus would consumers receive in this market?
6 If the marginal cost of producing this good is 4, how much total consumer surplus would consumers receive in this market?
1 If the marginal cost of producing this good is 0, what quantity would a profit-maximizing monopolist produce?
2 If the marginal cost of producing this good is 4, what quantity would a profit-maximizing monopolist produce?
3 If the marginal cost of producing this good is 0, what price would a profit-maximizing monopolist charge for the product?
4 If the marginal cost of producing this good is 4, what price would a profit-maximizing monopolist charge for the product?
5 If the marginal cost of producing this good is 0, how much total consumer surplus would consumers receive in this market?
6 If the marginal cost of producing this good is 4, how much total consumer surplus would consumers receive in this market?
1 answer:
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