Currently, Action Movers is the only licensed short-haul chemical carrier between Baton Rouge and Houston. The market demand for chemical freight along the route is given below. Q = 1,472 - 4P where P is price per ton of processed chemicals and Q is total tons hauled per week. To make things simple, also assume that Action has no fixed costs. From company records, you are given the following variable costs: TVCA = 20QA Calculate the monopoly outcome for action under these conditions. That is what price will Action Charge, how many tons will it haul, and what profits will it earn.

Answer rating: 100% (QA)

To calculate the monopoly outcome for Action Movers we need to find the profitmaximizing price quant... View the full answer