Polly owns a monopoly in her small town. She knows that the market demand curve for...
Polly owns a monopoly in her small town. She knows that the market demand curve for her product is given by the following equation where P is the price per unit of the good and Q is the number of units of the good: Market Demand: P = 330 – 2Q. Polly also knows the following cost structure:
Average Total Cost: ATC=10
Marginal Cost: MC=10
11) What is the profit maximizing quantity and price for Polly given the above information?
12) What is the value of Polly's profits?
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Polly owns a monopoly in her small town. She knows that the
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of the demand curve indicates that if the price of Fluff increases
by 20 cents, consumers will buy one less unit. Determine what
happens to profit if price is increased by calculating the new
profit level for Fluff when price is set 20 cents higher than the
profit-maximizing price.
problem 2
Probem 3
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