A monopoly faces the following demand, total cost and marginal cost equations: P = 90 – .75Q TC = 180 + 15Q + 1.75Q² MC = 15 +3.5Q a. Find the monopoly's profit-maximizing price and quantity. b. Find the monopoly's profit. c. Find consumer surplus in the monopoly setting. d. What is the socially efficient (competitive) price and quantity? e. What is consumer surplus in the competitive setting?

A monopoly faces the following demand, total cost and marginal cost equations: P = 90 – .75Q TC = 180 + 15Q + 1.75Q² MC = 15 +3.5Q a. Find the monopoly's profit-maximizing price and quantity. b. Find the monopoly's profit. c. Find consumer surplus in the monopoly setting. d. What is the socially efficient (competitive) price and quantity? e. What is consumer surplus in the competitive setting?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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