Essay
A monopolist has the following short-run total cost,marginal cost,and demand functions:
Total Cost: 
Marginal Cost: 
Demand: 
where P is the price per unit of output,and Q is the quantity of output.
a)What price and quantity combination maximizes the monopolist's total revenue?
b)What is the price range over which a price decrease would lead to an increase in the monopolist's total revenue?
c)What price will the profit-maximizing monopolist charge? What will profits equal?
d)What is the allocatively efficient price-quantity combination?
Correct Answer:
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a)Total revenue is maximized when margin...View Answer
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Correct Answer:
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