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Suppose the demand curve for a monopolist is QD = 500 - P, and the marginal revenue function is MR = 500 - 2Q. The monopolist has a constant marginal and average total cost of $50 per unit.
a. Find the monopolist's profit-maximizing output and price.
b. Calculate the monopolist's profit.
c. What is the Lerner Index for this industry?
The following graph shows a firm in a monopolistically competitive industry.
a. Show the firm's short-run profit-maximizing quantity and price. Is the firm making a profit?
b. Carefully explain what will happen in the industry over time, and draw a graph of a monopolistically competitive firm in long-run equilibrium.
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a pure monopolist determines that at the current level of output the marginal cost of production is 2.00 average
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Consider a firm that is a monopolist in the domestic market facing a demand curve given by p = 100 - q, but can also sell in the world market where there is perfect competition and the market price is 60. The firm is a price taker in the world mar..
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