5. Suppose this market is a monopoly. a) The monopolist face…
Questions
5. Suppоse this mаrket is а mоnоpoly. а) The monopolist faces the same demand curve P = 300- 5Q and initially faces a constant marginal cost MC = 30. Calculate the profit- maximizing monopoly quantity and compute the monopolist’s total revenue at the optimal price. b) Suppose that the monopolist’s marginal cost increases to MC = 90. Compute the monopolist’s total revenue at the optimal price.