Scenario: Suppose that the demand is given by: P = 100 - Q Marginal Revenue is MR = 100 - 2Q and Total Cost function is: TC(Q) = 200 Assume the firm is a price-maker (monopolist). What will be the optimal quantity (Q") under the two-part pricing? (Hint: plug the price into the demand equation)

Scenario: Suppose that the demand is given by: P = 100 - Q Marginal Revenue is MR = 100 - 2Q and Total Cost function is: TC(Q) = 200 Assume the firm is a price-maker (monopolist). What will be the optimal quantity (Q") under the two-part pricing? (Hint: plug the price into the demand equation)

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

Scenario: Suppose that the demand is given by:
P = 100 - Q
Marginal Revenue is MR = 100 - 2Q
and Total Cost function is: TC(Q) = 200
Assume the firm is a price-maker (monopolist).
What will be the optimal quantity (Q") under the two-part pricing? (Hint: plug the price into the
demand equation)

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