Scenario 10.1:
Barbara is a producer in a monopoly industry. Her demand curve, total revenue curve, marginal revenue curve and total cost curve are given as follows:
Q = 160 - 4P TR = 40Q - 0.25 MR = 40 - 0.5Q TC = 4Q MC = 4
-Refer to Scenario 10.1. The price of her product will be:

Question

Scenario 10.1:
Barbara is a producer in a monopoly industry. Her demand curve, total revenue curve, marginal revenue curve and total cost curve are given as follows:
Q = 160 - 4P TR = 40Q - 0.25  MR = 40 - 0.5Q TC = 4Q MC = 4
-Refer to Scenario 10.1. The price of her product will be:

Quizplus · Accepted Answer

To determine the price, we need to find where the marginal cost curve intersects with the marginal revenue curve. Setting MR = MC:

40 - 0.5Q = 4

Solving for Q:

Q = 72

Substituting Q = 72 into the demand curve:

P = (160-Q)/4

P = 22

Therefore, the price of her product will be $22.

Scenario 10.1: Barbara Is a Producer in a Monopoly Industry. Her Demand