What would the profit maximizing price and quantity be

Reference no: EM13221436

A monopolist can produce its output at a constant average and constant marginal cost of: ATC = MC = 5 The monopoly faces a demand curve given by the following function: Q= 53-P And a marginal revenue curve that is given by the function: MR = 53 - 2Q

a) Draw the following: a. The firm's demand curve b. The firm's marginal revenue curve c. The firm's marginal cost curve

b) What is the monopolist's profit maximizing price?

c) What is the profit maximizing quantity for this monopolist?

d) How much profit is the monopolist making?

e) Suppose the market is no longer depicted by a monopoly, but has become perfectly competitive. What would the profit maximizing price and quantity be if the market were perfectly competitive?

Reference no: EM13221436

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