2. Given the demand curve of the monopolist Q = 60 -2P and the cost function of the monopolist TC = 50-4Q+ 0.5 Q^{2}, Then find: A. The inverse demand function, average revenue, the marginal revenue functions, marginal cost function? B. Find the level of output and price that maximizes the monopolist profit? C. The level of profit at equilibrium. D. Show graphically profit maximization level of output?
2. Given the demand curve of the monopolist Q = 60 -2P and the cost function of the monopolist TC = 50-4Q+ 0.5 Q^{2}, Then find: A. The inverse demand function, average revenue, the marginal revenue functions, marginal cost function? B. Find the level of output and price that maximizes the monopolist profit? C. The level of profit at equilibrium. D. Show graphically profit maximization level of output?
Chapter8: Monopoly
Section: Chapter Questions
Problem 9SQP
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Transcribed Image Text:2. Given the demand curve of the monopolist Q = 60 - 2P and the cost function of the monopolist TC = 50-4Q+ 0.5
Q^{2}, Then find: A. The inverse demand function, average revenue, the marginal revenue functions, marginal cost
function? B. Find the level of output and price that maximizes the monopolist profit? C. The level of profit at
equilibrium. D. Show graphically profit maximization level of output?
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