Suppose there is a monopolist in the market for a specific video game facing a demand curve: P = 20-0.5Q with MR = 20 - Q. The monopolist marginal cost curve is MC = 4, its total variable costs are TVC = 4Q and it faces a total fixed costs equal TFC = $102. a. What is the optimal quantity to maximize profit? b. What is the optimal price to maximize profit? c. What is the profit for the monopoly? d. What is the consumer surplus?

Suppose there is a monopolist in the market for a specific video game facing a demand curve: P = 20-0.5Q with MR = 20 - Q. The monopolist marginal cost curve is MC = 4, its total variable costs are TVC = 4Q and it faces a total fixed costs equal TFC = $102. a. What is the optimal quantity to maximize profit? b. What is the optimal price to maximize profit? c. What is the profit for the monopoly? d. What is the consumer surplus?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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