Question: 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)

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?

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

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