A Monopolist with TC = 3q 2 + Q + 12

The Answer is i)MC = 6q + 1 and MR = 81 - 4q. Set MC = MR and you get 10q = 80 or q = 8. P is found by plugging q into the demand curve: p = 81 - 2(8)= 65. ii)CS = 64; DWL = 16. iii)E = - 65/16.

A Monopolist with TC = 3q 2 + Q + 12

The Answer is i)MC = 6q + 1 and MR = 81 - 4q. Set MC = MR and you get 10q = 80 or q = 8. P is found by plugging q into the demand curve: p = 81 - 2(8)= 65. ii)CS = 64; DWL = 16. iii)E = - 65/16.

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A Monopolist with TC = 3q²+ Q + 12

Question 1

Essay

A monopolist with TC = 3q²+ q + 12 faces a demand curve of P = 81 - 2q.
i)Find the monopoly price and quantity.
ii)Find CS and DWL.
iii)Find the elasticity of the demand at the monopoly equilibrium.

A Monopolist with TC = 3q2 + Q + 12

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A Monopolist with TC = 3q²+ Q + 12

Correct Answer:
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