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Assume the market demand curve faced by a monopolist is and its short-run total cost function is

(a) Derive the inverse demand curve for the monopolist.
(b) Using the result obtained in part (a), derive the monopolist's total revenue curve as a function of Q. Compute the corresponding marginal revenue function.
(c) Compute the firm's short run marginal cost curve.
(d) Using the results obtained in part (b) and part (c), derive the monopolist's short-run profit-maximizing level of output.
(e) Determine the price charged by the profit-maximizing monopolist and the amount of profit earned.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M938215

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