Suppose that the quantity demanded for Windows 11 operating system is given by q = 320 − 2p, where p is the price of the Windows 11. Let us assume that the total cost of producing q units of Windows 11 is given by C(q) = 500 + 10q. a. Find marginal revenue, marginal cost, and average cost in terms of quantity q produced. Graphically illustrate the demand curve, marginal revenue curve, marginal cost curve, and average cost curve. b. What is the price that Microsoft charges for Windows 11? How many Windows 11 will Microsoft sell? How much profit it will make? Identify Microsoft’s profit maximizing price and quantity on your graph; and show the amount of profit that Microsoft will make.

Suppose that the quantity demanded for Windows 11 operating system is given by q = 320 − 2p, where p is the price of the Windows 11. Let us assume that the total cost of producing q units of Windows 11 is given by C(q) = 500 + 10q. a. Find marginal revenue, marginal cost, and average cost in terms of quantity q produced. Graphically illustrate the demand curve, marginal revenue curve, marginal cost curve, and average cost curve. b. What is the price that Microsoft charges for Windows 11? How many Windows 11 will Microsoft sell? How much profit it will make? Identify Microsoft’s profit maximizing price and quantity on your graph; and show the amount of profit that Microsoft will make.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter25: Monopoly

Section: Chapter Questions

Problem 9E

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