Consider a monopoly which faces the demand curve P = 55-2Q and having a marginal cost function

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Consider a monopoly which faces the demand curve P = 55-2Q and having a marginal cost function MC= 2Q-5.

a) Calculate the marginal revenue (MR) function.

b) State the profit maximizing output rule for the monopoly in the short-run.

c) What is the profit maximing output level? Next, calculate the price and the profit of the monopoly?

Related Book For answer-question

Microeconomics

ISBN: 978-0132857123

8th edition

Authors: Robert Pindyck, Daniel Rubinfeld

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Posted Date: Oct 11, 2020 01:48 PM

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Consider a monopoly which faces the demand curve P = 55-2Q and having a marginal cost function

Question:

Expert Answer:

A Marginal revenue can be find by taking derivative of total revenue TR pQ 552QQ 55Q2Q2 MR dTRdQ 554... View the full answer

Microeconomics

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