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Why is the marginal revenue of the monopolist less

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Reference no: EM132407215

1 Why do firms place ads with coupons in the paper, instead of simply offering a sale price in the same ad or in the store?

2.If a monopolist has two production plants with the following marginal costs, how much would it produce in each plant if it faces a demand given by QD = 100 - P ?

MC1 =Q1 MC2 = 2Q2 + 20

3 (a) Why is the marginal revenue of the monopolist less than price?

4 (b) Why is the Lerner index a good measure of a monopoly's market power?

5 (c) Why is it not correct to say that a monopoly, because it is the only firm in the market, can choose to set whatever price it wants?

Reference no: EM132407215

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