The inverse demand function in a market is given by P 720 Q The firms that operate in this market have zero fixed costs, and constant marginal costs equal to MC 120 If the market is served by a single price monopolist then the market price will be The total profits of the monopolist will be Now suppose that the market is made up of 100 identical consumers If the monopolist prices using a two part tariff, it will set a fixed fee of F And a unit price of P As a result, the total profits of the monopolist will be Next consider that the market is served by a pair of Cournot duopolists In equilibrium each firm will supply an output of The market price will be And the combined profits of both firms will be Finally suppose the market is served by Bertrand duopolists Then each firm will set a price of And the combined profits of both firms will be

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Question: The inverse demand function in a market is given by P=720-Q. The firms that operate in this market have zero fixed costs, and constant marginal

The inverse demand function in a market is given by P=720-Q. The firms that operate in this market have zero fixed costs, and constant marginal costs equal to MC=120.

If the market is served by a single-price monopolist then the market price will be? The total profits of the monopolist will be?
Now suppose that the market is made up of 100 identical consumers. If the monopolist prices using a two-part tariff, it will set a fixed fee of F=? And a unit price of P=? As a result, the total profits of the monopolist will be?
Next consider that the market is served by a pair of Cournot duopolists. In equilibrium each firm will supply an output of? The market price will be? And the combined profits of both firms will be?
Finally suppose the market is served by Bertrand duopolists. Then each firm will set a price of? And the combined profits of both firms will be?

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