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Demand: p=100-2q
Total Costs: c(q) = 40+ 3q2
7) Formulate the firms profit function for a monopoly. Differentiate this profit function with respect to q and solve for the profit maximizing price. What quantity of output will be sold at this price?
Your solution to #7 is monopoly equilibrium price and quantity. It this outcome efficient in terms of maximizing the welfare of society? How might you prove that it is or is not?
Calculate the Lerner Index for our monopolist
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if the income levels of all individuals are equal the population index of demand for physician services will be
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