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28 Sep 2019
Assume company A is a monopoly with total cost function given as C(q) = 50357 +10q, with q representing quantity. Market inverse demand is given as P = 2450 -2q.
1) Solve for marginal revenue, marginal cost, and average cost curves.
2) Solve for P and Q at profit maximization and monopoly profit.
3) Assume now that company A is forced to charge an efficient price (perfect competition). Find price, quantity, and profits in this scenario.
Assume company A is a monopoly with total cost function given as C(q) = 50357 +10q, with q representing quantity. Market inverse demand is given as P = 2450 -2q.
1) Solve for marginal revenue, marginal cost, and average cost curves.
2) Solve for P and Q at profit maximization and monopoly profit.
3) Assume now that company A is forced to charge an efficient price (perfect competition). Find price, quantity, and profits in this scenario.
Richa AroraLv10
28 Sep 2019
