managerial economics

Display all calculations and briefly explain your answers.

Question 1
A monopolist faces the following linear demand curve:
Q= 160 – 4p

Suppose the monopolist’s costs are given by:
TC (q) = q2

a)Solve for the monopolist’s profit-maximising quantity and price, and the level of profits earned.
b)Use a graph to illustrate your solution to the monopolist’s problem.
c)What is the consumer’s price elasticity of demand in equilibrium?

managerial economics

sennachan

Joined September 2008

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