Examlex

Solved

A Monopolist Has a Demand Function That Is Described by Qd

question 88

Essay

A monopolist has a demand function that is described by Qd = 100 - 2P. The monopolist's cost function is simply described by TC = 30 + 2Q. Therefore MC is constant at 2. The marginal revenue function for the monopolist is 100 - 4P. What is the profit-maximizing price and quantity for the monopolist? What is the profit that the monopolist earns at this output level?


Definitions:

Trading Security

A type of investment that is bought and held primarily for selling them in the near term to profit from price changes.

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically involving periodic interest payments and the return of the principal at maturity.

Available-For-Sale

A classification for investments in securities that a company plans to sell but does not classify as actively traded or held to maturity.

Long-Term Investments

Assets purchased by a company intended to be held for more than one year for the purpose of earning a return.

Related Questions