ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Transcribed Image Text: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?
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