What quantity must monopolist produce to maximize profit

Reference no: EM13388092

A monopolist faces a demand curve given by:

P = 105 - 3Q, where P is the price of the good and Q is the quantity demanded. The marginal cost of production is constant and is equal to $15. There are no fixed costs of production.

A) What quantity should the monopolist produce in order to maximize profit?

B) What price should the monopolist charge in order to maximize profit?

C) How much profit will the monopolist make?

D) What is the deadweight loss created by this monopoly (hint: compare the monopoly outcome with the perfectly competitive outcome).

E) If the market were perfectly competitive, what quantity would be produced?

Reference no: EM13388092

Questions Cloud

What would be the effect of each of the following on the : what would be the effect of each of the following on the demand for chevrolets in the united states? in each case

Why should businesses be concerned with international : why should businesses be concerned with international marketing? elaborate.how is domestic marketing different from

Year corporate bond has an annual coupon payment of 9 : bonds part 1 questions 1 to 6question 1 of 20all of the following may serve to reduce the coupon rate that would

Define and explain each kind of managed care organization : in the united states managed care is becoming an increasingly popular method of administering healthcare. it influences

What quantity must monopolist produce to maximize profit : a monopolist faces a demand curve given byp 105 - 3q where p is the price of the good and q is the quantity demanded.

New century financial corp formed in 1995 was a large : new century financial corp. formed in 1995 was a large mortgage lender in the united states. many of these mortgages

Brand building is a crucial exercise that often takes years : brand building is a crucial exercise that often takes years to accomplish. the benefit of brand equity is realized in

A business issued a 30-day 7 note for 36000 to a creditor : a business issued a 30-day 7 note for 36000 to a creditor on account. illustrate the effects on the accounts and

Here is a rubric for your final paper it should be 5-7 : here is a rubric for your final paper. it should be 5-7 pages long not counting titles abstract references table of

User Account

All Pages