Question Suppose that a monopolist faces a demand curve Q D 3375P 3 They have constant marginal costs MC 10 a) What is the price elasticity of demand b) What is the monopoly price c) What is the markup over marginal cost How is this related to the elasticity ...

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Question: Suppose that a monopolist faces a demand curve: Q^D=3375P^-3. They have constant marginal costs: MC=10 .

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Suppose that a monopolist faces a demand curve: $QD=3375P−3.\' tabindex="0">Q^D=3375P^-3.$ They have constant marginal costs: $MC=10\' tabindex="0">MC=10$ .

a) What is the price elasticity of demand?

b) What is the monopoly price?

c) What is the markup over marginal cost? How is this related to the elasticity?

Related Book For answer-question

Price theory and applications

ISBN: 978-0538746458

8th edition

Authors: Steven E landsburg

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Posted Date: Aug 01, 2020 11:30 AM

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Question: Suppose that a monopolist faces a demand curve: Q^D=3375P^-3. They have constant marginal costs: MC=10 .

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Price theory and applications

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