SCENARIO: A MONOPOLIST
A monopolist faces a demand curve given by P = 20 - Q and has total
Costs given by TC = Q2.By using a bit of calculus, you should be able
To determine that the firm's marginal revenue is MR = 20 - 2Q and its
Marginal cost is MC = 2Q.
Reference: Ref 91
(Scenario: A Monopolist) If the firm's profitmaximizing output level is
5 and its profit maximizing price is $15, what are its monopoly profits
At this price and quantity?

Question

SCENARIO: A MONOPOLIST
A monopolist faces a demand curve given by P = 20 - Q and has total
Costs given by TC = Q2.By using a bit of calculus, you should be able
To determine that the firm's marginal revenue is MR = 20 - 2Q and its
Marginal cost is MC = 2Q.
Reference: Ref 9­1
(Scenario: A Monopolist) If the firm's profit­maximizing output level is
5 and its profit­ maximizing price is $15, what are its monopoly profits
At this price and quantity?

Quizplus · Accepted Answer

The Answer of SCENARIO: A MONOPOLIST
A monopolist faces a demand curve given by P = 20 - Q and has total
Costs given by TC = Q2.By using a bit of calculus, you should be able
To determine that the firm's marginal revenue is MR = 20 - 2Q and its
Marginal cost is MC = 2Q.
Reference: Ref 9­1
(Scenario: A Monopolist) If the firm's profit­maximizing output level is
5 and its profit­ maximizing price is $15, what are its monopoly profits
At this price and quantity?

SCENARIO: a MONOPOLIST A Monopolist Faces a Demand Curve Given by P =