Determine monopolist profit maximizing price and toal output

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Reference no: EM1374168

Demand for microprocessors is given through P=35-5Q, where Q is the quantity of mircochips (in millions). The typical company total cost of manufacturing chips is Ci=5qi, where qi is the output of company i.

a. Assume that one company acquires all the suppliers in the industry and there by creates a monopoly. Determine the monopolist`s profit maximizing price and toal output?

b. Calculate the monopolist`s profit and the total consumer surplus of purchasers.

Reference no: EM1374168

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