Question

Economics: Find the equations for Marginal Cost, Marginal Revenue, Average Total Cost...

Answer 1

3. A monopolist faces the following demand curve and cost function:

P = 50 – ½ Q
TC = 2Q + 1000

a) Find the equations for Marginal Cost, Marginal Revenue, Average Total Cost.

For the following questions, you it may help to draw a graph on graph paper.

b) What is the optimal price and quantity if the firm can only set one price for all units?

c) What is the firm’s profit?

d) What is the deadweight loss?

Answer 2

Any help would be greatly appreciated!!