Consider a Monopolist That Has a Total Cost Curve of TC

question 11

Essay

Consider a monopolist that has a total cost curve of TC = 110Q - (0.25)Q2. The market demand equation is Qd = 155 - P.
(A)What are the total revenue, marginal revenue, marginal cost, equilibrium quantity, equilibrium price, and profits for the monopolist in this market?
(B)Suppose the government instructs the firm to produce using average cost pricing. What are the equilibrium quantity, equilibrium price, and profits?
(C)Suppose further that the government wants the firm to produce where supply equals demand. What will be the equilibrium quantity, equilibrium price, and profits?

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Definitions:

Procedural Injustice

The perception that the processes leading to outcomes are unfair.

Taxation

The process by which a government imposes charges on citizens or residents to generate revenue for public expenses and services.

Representation

The act of speaking or acting on behalf of someone or the depiction of someone or something in a particular manner.

Procedural Justice

The fairness in the processes that resolve disputes and allocate resources.