A Firm has Cost Function C= 2000 +0.001q and wants to produce 1000000 units. Show that its Average Cost will be smaller than the average cost of two identical firms producing 500000 units each. What is this type pf monopoly called?

A Firm has Cost Function C= 2000 +0.001q and wants to produce 1000000 units. Show that its Average Cost will be smaller than the average cost of two identical firms producing 500000 units each. What is this type pf monopoly called?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter9: Monopoly

Section: Chapter Questions

Problem 6SCQ: Imagine a monopolist could charge a different price to every customer based on how much he or she...

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8. A Firm has Cost Function C= 2000 + 0.001q and wants to produce 1000000 units. Show that its
Average Cost will be smaller than the average cost of two identical firms producing 500000 units
each. What is this type pf monopoly called?

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