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1. Suppose that a monopolist faces linear demand given by Q(p)=1000-5p
The monopolist also pays a marginal cost of $10 for each unit produced. What is the optimal quantity that the monopolist will charge to maximize its profits?
2. Suppose that a monopolist faces linear demand given by Q(p)=1000-5p
The monopolist also pays a marginal cost of $10 for each unit produced. What is the optimal price that the monopolist will charge to maximize its profits?
What would be a numerical example that would illustrate a situation in which there are positive accounting profits and zero economic profits?
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find in the B.7 table & write down a critical value of Chi2 that you've used for the decision about H0
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