Suppose, they demand curve for a monopolist is QD = 500 - P and the marginal revenue function is MR
Question: Suppose, they demand curve for a monopolist is QD = 500 – P and the marginal revenue function is MR = 500 – 2P. The monopolist has a constant marginal and average total cost of $50 per unit.
a. Find the monopolist's profit maximizing output and price.
b. Calculate the monopolist's profit.
c. What is the Lerner Index for this industry?
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Solution Format: Word Document
Solution Format: Word Document
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