Koni sam

Budget: $15


A monopolist’s demand curve is MWTP=50-Q. They produce 30 units. What is the price elasticity at this output? What should the firm do to maximize profit if marginal cost is greater than 0?


Tutor Aaron Lee

MWTP=50-30=$20 price elasticity = [P/Q][1/SLOPE OF P] = [$20/30 UNITS][1/1]=0.666...

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.