COURSE: MICROECONOMICS 2 - MONOPOLY IN DURABLE GOODS A monopolistic firm has estimated its inverse demand function as P = 200 − 0.5 Q + 40*(1/UL) with a increasing marginal cost (MC) estimated to be 10 Q. (a) Estimate effect on firm's extraordinary profit if it changes useful life (UL) of its product from 8 years to 5 years. b) What will happen to selling price?
COURSE:
A monopolistic firm has estimated its inverse
(a) Estimate effect on firm's extraordinary profit if it changes useful life (UL) of its product from 8 years to 5 years.
b) What will happen to selling
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Doubt: Is extraordinary profit for a monopolist condition as (P - MC) x Q ? This would avoids integration method of marginal cost (MC)
You mentioned Profit = TR - TC, so is true this condition for monopolist??
Can you confirm it. I urgently need these results
by Bartleby ExpertThe development of exercise is not well seen. I can't get values mentioned, especially extraordinary profit of 56.31.
Can you please send calculations again?
How do you get values of 1,966.54 and 1,910.23?
Thank you :D
by Bartleby Expert
