If the inverse demand function is p = 300 – 3Q, what is the marginal revenue function? Draw the demand and marginal revenue curves. At what quantities do the demand and marginal revenue lines hit the quantity axis?
Answer to relevant QuestionsIf the inverse demand curve a monopoly faces is p = 10Q–0.5, what is the firm’s marginal revenue curve? AT& T Inc., the large U. S. phone company and the one- time monopoly, left the payphone business at the beginning of 2009 because people were switching to wireless phones. U.S. consumers owning cellphones reached 80% by 2007 ...At the profit-maximizing quantity in figure, what is the elasticity of demand? What is the Lerner Index?Can a firm operating in the upward- sloping portion of its average cost curve be a natural monopoly? Explain.A monopoly chocolate manufacturer faces two types of consumers. The larger group, the hoi polloi, loves desserts and has a relatively flat, linear demand curve for chocolate. The smaller group, the snobs, is interested in ...
Post your question