A monopoly sells to a market with demand ?(p) = 100/p2 and has a cost ?(q) = q. (a) Find the inverse demand curve, profit maximising quantity and profit. (b) If the market was competitive, what price would be charged?

A monopoly sells to a market with demand ?(p) = 100/p2 and has a cost ?(q) = q. (a) Find the inverse demand curve, profit maximising quantity and profit. (b) If the market was competitive, what price would be charged?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A monopoly sells to a market with demand ?(p) = 100/p2 and has a cost ?(q) = q.

(a) Find the inverse demand curve, profit maximising quantity and profit.

(b) If the market was competitive, what price would be charged?

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