Find out the quantity at which profits are maximal. given, Ask an Expert

Economics

The following information about a monopoly is given:

Demand: Q = 40-2P(Q) Average cost: AC(Q) = Q

Marginal Cost: MC(Q) = 2(Q)

a) Derive the marginal revenue equation

b) Find out the quantity at which profits are maximal. given that quantity, find out the price charged and monopolist's profits. (solve for answers using the equations)

c) Find out the efficient output?

For the monopolistic producer facing two markets, given the price and output in one of two markets, how would you estimate the profit-maximizing output and price in other market under price discrimination?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9306179

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