Microeconomics 2nd Edition by Douglas Bernheim

تمرين 2

XYZ corporation is a monopolist of widgets. The annual inverse demand function for widgets is P ( Q ) = 1000 5 Q. XYZ's annual cost function is C ( Q ) = 400 Q + 5 Q 2. What is its profit-maximizing price and (annual) quantity sold What is the deadweight loss from monopoly pricing