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A monopolist has the following cubic cost function:
TC = 0.8Q3:- 32Q2:+ 1000Q + 32000If the market demand function for the firm's product is P = 3400 - 14Q
(a) What is the monopolist's profit-maximizing combination of price and quantity?
(b) What is the firm's profit?
(c) Derive the firm's trace function.
(d) What is the equation of the dislocated demand curve associated with normal profits?
(e) What is the equation of the dislocated demand curve associated with a price of $3,200?
A industry consists of 20 producers, all of whom operate with the identical short-run total cost curve ST C(Q) = 16+2Q+Q^2. The market demand curve for A is D(P ) = 110?P , where P is the market price.
As a two-stage game using a game tree with Company B going first. Solve this game and identify the Nash Equilibrium and does either Company have a first-mover advantage?
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