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Consider a monopolist described by the following equations:
Market demand for monopolist's product: P = 100 - Q
ATC for monopolist: ATC = 20 +(3/10) Q
MC for monopolist: MC = 20 + (3/5)Q
In this question we will use the above data to compare a single price monopolist to the same monopolist that is regulated either with average cost regulation or marginal cost regulation. At the end of the question you will fill out a table to compare your results.
a. Given the above information, what is the profit maximizing price and quantity for the single price monopolist? You should round your answers to the nearest whole number.
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