Consider a Monopoly with Inverse Demand Function P = 90

question 96

Essay

Consider a monopoly with inverse demand function p = 90 - 10y and cost function c (y)= 10y.
i)Find the profit maximizing output and price, and calculate the monopolist's profits.
ii)Now, suppose the government imposes a per unit tax t = 20. Find the new price, output and profits.

---

Definitions:

Agenda

A list or plan of items to be discussed, acted upon, or achieved in a meeting or strategy session.

Decision Aid

Tools or systems designed to assist individuals or groups in making choices by organizing information, providing analytical capabilities, or suggesting potential outcomes.

Effective

Producing the intended or desired result with efficiency.

Moderator

An individual responsible for overseeing discussions in forums, meetings, or online platforms to ensure rules and order are maintained.