Total costs for a monopolist are defined as: C(q) =q³+1. Hence, marginal costs are: MC(q)=3q2. If market demand is: P(q)=100-10q a) How much is the monopolist going to produce? b) Provide a graphical representation of your results c) If the monopolist could discriminate prices perfectly, how would your answers to a) and b) change?

Total costs for a monopolist are defined as: C(q) =q³+1. Hence, marginal costs are: MC(q)=3q2. If market demand is: P(q)=100-10q a) How much is the monopolist going to produce? b) Provide a graphical representation of your results c) If the monopolist could discriminate prices perfectly, how would your answers to a) and b) change?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter28: Antitrust And Regulation

Section: Chapter Questions

Problem 8E

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Total costs for a monopolist are defined as: C(q) = q3 + 1 Hence, marginal costs are: MC(q) = 3q2 If market demand is: P(q)=100 - 10q. a) How much is the monopolist going to produce? b) Provide a graphical representation of your results. c) If the monopolist could discriminate prices perfectly, how would your answers to a) and b) change.
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