Suppose a monopolists cost and revenue information is given by p = 20 – 0.002q Demand TR(q) = 20q – 0.002q? MR = 20 – 0.004q TR MR TC = 160 + 0.025q² MC = 0.05q TC MC Any other relation you need you...

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Suppose a monopolists cost and revenue information is given by<br>p = 20 – 0.002q<br>Demand<br>TR(q) = 20q – 0.002q?<br>MR = 20 – 0.004q<br>TR<br>MR<br>TC = 160 + 0.025q²<br>MC = 0.05q<br>TC<br>MC<br>Any other relation you need you can derive yourself.<br>Show all of your work.<br>a. What is this single price monopolist's profit maximizing output<br>choice?<br>b. What price should this monopolist charge for their output?<br>c. What is the average cost per unit at the profit maximizing level of<br>output?<br>d. Is the monopolist earning a loss (profit)? Either way show the loss<br>(profit)?<br>

Extracted text: Suppose a monopolists cost and revenue information is given by p = 20 – 0.002q Demand TR(q) = 20q – 0.002q? MR = 20 – 0.004q TR MR TC = 160 + 0.025q² MC = 0.05q TC MC Any other relation you need you can derive yourself. Show all of your work. a. What is this single price monopolist's profit maximizing output choice? b. What price should this monopolist charge for their output? c. What is the average cost per unit at the profit maximizing level of output? d. Is the monopolist earning a loss (profit)? Either way show the loss (profit)?

Jun 07, 2022

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Suppose a monopolists cost and revenue information is given by p = 20 – 0.002q Demand TR(q) = 20q – 0.002q? MR = 20 – 0.004q TR MR TC = 160 + 0.025q² MC = 0.05q TC MC Any other relation you need you...

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