Question

Suppose the market demand for mountain spring water is given as follows:

P = 1200 – Q

Mountain spring water can be produced at no cost.

(a) What is the profit maximizing level of output and price of a monopolist?

Answer 1

how do i even graph this

Answer 2

note that for a monopoly profit maximization is dictated solely by a single firm .Therefore at that point where MR = MC =>max profit for the firm

Answer 3

how is it calculated

Answer 4

the MC function must be given but for MR.Since the market is linear MR = same y intercept + double the slope * Q
i.e. 1200 -2Q
(note:i am a bit rusty so it could be the other way around (i.e. switch p with q))

Answer 5

checked my derivation seems to be correct

Answer 6

thnk u...im still a bit lost

Answer 7

ok elaborate where specifically are you stuck?

Answer 8

i see it shld be graphed bt idk how to graph it or the specific fns how to calculate them