67 227
Assignments Done
99,2%
Successfully Done
In November 2018

Answer to Question #71229 in Microeconomics for Mensah Gerrard Kobina

Question #71229
Suppose a monopoly can produce any level of output it wishes at a constant marginal and average cost of $5 per unit. Assume the monopoly sells its good in two separate markets. The demand curve of the first market is q1= 55-p1 and the demand curve of the second market is q2= 70-2p2
Expert's answer
P1=55-q1
TR1=55q1-q1*q1
MR1=55-2*q1
55-2q1=5
Q1=25
P1=55-25=30
P2=35-0.5q2
TR2=35q2-0.5q2*q2
MR2=35-q2
5=35-q2
Q2=30
P2=70-2*30=10

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

Submit
Privacy policy Terms and Conditions