ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Suppose a certain city has a
The demand in the community is approximated by the equation Qd = 85 - P/2 (alternatively, you can write the demand equation as Qd = 85 – 0.5P).
- Graphically depict the demand curve as well as the marginal cost (MC) curve.
- If the cable company is free to choose its own
price Pm and quantity Qm, graphically depict the monopolyequilibrium price and quantity. Add any other curve(s) to your diagram that may be required to obtain this outcome. - Compute and state the exact monopolist equilibrium price Pm and quantity Qm that you depicted graphically.
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