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Answer to Question #39844 in Economics of Enterprise for Arash
Question #39844
A monopolist can produce at constant average and marginal costs of AC = MC = 9. The firm faces a demand curve given by:
q = 75 – p
Calculate the profit maximizing price quantity combination for the
monopolist. Also calculate the monopolist’s profits
q = 75 – p
Calculate the profit maximizing price quantity combination for the
monopolist. Also calculate the monopolist’s profits
Expert's answer
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For the same above question... What output would be produced by this industry under perfect competition? Show that PM > PC and QC = 2QM.
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