Market research shows that a particular monopolist faces a market demand function given by Its cost function is P (Q) = 50  - 2Q. C(Q)= 47 + 10Q What is the monopoly market price and quantity? What is the monopolist’s profit? What is consumer surplus at the monopoly price?

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter13: Monopoly And Antitrust
Section: Chapter Questions
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Market research shows that a particular monopolist faces a market demand function given by
Its cost function is
P (Q) = 50  - 2Q.
C(Q)= 47 + 10Q

  1. What is the monopoly market price and quantity?

  2. What is the monopolist’s profit?

  3. What is consumer surplus at the monopoly price?

  4. What would the price and quantity be in this market be if the monopolist behaved as in perfect competition?

  5. What is the consumer surplus in the case of perfect competition? Which is higher and why?

  6. What is the “social cost” of monopoly?

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