economics-Consider a monopolist facing a demand curve

economics-Consider a monopolist facing a demand curve

Question
	Consider a monopolist facing a demand curve P=120-Q. Its total cost function is C(Q)=30Q. Calculate the price the monopolist will charge.

Question 8 options:
A)	
50

B)	
75

C)	
45

D)	
50

A monopolist can produce at a constant average (and marginal) cost of AC = MC = $5. It faces a market demand curve given by Q = 53 — P. Caculate its profit

Question 9 options:
A)	
576

B)	
200

C)	
1,200

D)	
364


Suppose a second firm enters the market. Let Q1 be the output of the first firm and Q2 be the output of the second. Market demand is now given by

Q1 + Q2 = 53 – P.

The profit of each firm in a Cournot equilibrium would be

Question 10 options:
A)	
256

B)	
512

C)	
128

D)	
26