Find out the rule-of-thumb price when monopolist has

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a. Determine the "rule-of-thumb" price when the monopolist has a marginal cost of $25 and the price elasticity of demand of -3.0.

b. Galaxy has market power in the market for Iowa State University Big XII Championship 2000 T-shirts. If the price of the firm's product =$20, and the total cost curve is TC= 5-15Q, what is the markup for this firm?

c. What if the price elasticity of demand for this firm becomes -5, what will be the firm's markup?

d. Compare a monopsony to a monopoly.

Reference no: EM13391543

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