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Category > Economics Posted 03 May 2017 My Price 3.00

Suppose the monopolist faces the following demand

Suppose the monopolist faces the following demand curve: P = 140 - 6Q. Marginal cost of production is constant and equal to $20, and there are not fixed cost. What is the monopolist's profit maximizing level of output?

Aug 13 2016 06:25 PM

 

 

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Alpha Geek
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Status NEW Posted 03 May 2017 03:05 PM My Price 3.00

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file 1493826535-answer1.docx preview (66 words )
S-----------upp-----------ose----------- th-----------e m-----------ono-----------pol-----------ist----------- fa-----------ces----------- th-----------e f-----------oll-----------owi-----------ng -----------dem-----------and----------- cu-----------rve-----------: P----------- = -----------140----------- - -----------6Q.----------- Ma-----------rgi-----------nal----------- co-----------st -----------of -----------pro-----------duc-----------tio-----------n i-----------s c-----------ons-----------tan-----------t a-----------nd -----------equ-----------al -----------to -----------$20-----------, a-----------nd -----------the-----------re -----------are----------- no-----------t f-----------ixe-----------d c-----------ost-----------. W-----------hat----------- is----------- th-----------e m-----------ono-----------pol-----------ist-----------'s -----------pro-----------fit----------- ma-----------xim-----------izi-----------ng -----------lev-----------el -----------of -----------out-----------put-----------? -----------Aug----------- 13----------- 20-----------16 -----------06:-----------25 -----------PM ----------- An-----------swe-----------r -----------Tot-----------al -----------rev-----------enu-----------e =----------- Pr-----------ice----------- * -----------Qua-----------nti-----------ty -----------=14-----------0 Q----------- - -----------6 Q-----------^2 -----------Mar-----------gin-----------al -----------rev-----------enu-----------e =----------- 14-----------0 ------------ 12-----------Q M-----------arg-----------inl-----------a c-----------ost----------- is----------- gi-----------ven----------- as----------- 20----------- Pr-----------ofi-----------t m-----------axi-----------miz-----------ing----------- -----------
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