A monopolist faces a demand curve P = 210 - 3Q and faces a constant marginal cost MC = 15.
A monopolist faces a demand curve P = 210 - 3Q and faces a constant marginal cost MC = 15.
a) Calculate the profit-maximizing monopoly quantity and compute the monopolist's total revenue at the optimal price.
d) Suppose that this monopoly opens for competition and the market becomes perfectly competitive. The firms face constant marginal cost MC = 15. Find the long-run perfectly competitive industry price and quantity.
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A monopolist faces a demand curve P = 210 - 3Q and faces a constant marginal cost MC = 15.
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