monopoly vs perfectly competitive equilibirium
TR=$15Q-$).000005Q2(squared)
MR=dTR/dQ=$15=$0.00001Q
Marginal costs for production and distribution are stable at$5per unit. Calculate output, price and profits at profit-maximizing level. What record price and profit levels would prevail following expiration of copyright protection based on the assumption that perfectly competitive pricing would result?
https://brainmass.com/economics/monopolies/monopoly-versus-perfectly-competitive-equilibrium-18654
Solution Preview
To maximize the monopoly profit, the firm use first order condition, i.e.
MR=MC or
15-0.00001Q = 5
then 0.00001Q = 10
solve for Q*=10/0.00001= ...
Solution Summary
The expert determines monopoly versus perfectly competitive equilibrium.
$2.49