Question: 5. Consider a monopoly with the market demand D(p) = 120 -p, where p s 120. The monopoly's total cost function is C(Q) = 2Q2.

5. Consider a monopoly with the market demand D(p) = 120 -p, where p s 120. The monopoly's total cost function is C(Q) = 2Q2. a) Find the monopoly's optimal output OM and price PM. For questions below, suppose that the monopoly is regulated by the government that set the highest price PH = 64. That is, the monopoly can produce any output Q, but cannot set the price above 64. b) Find the marginal revenue function of the regulated monopoly (Note: depending on the level of output, the formula for the marginal revenue can be different). c) Find the optimal output QR and price prof the regulated monopoly
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
