Explore BrainMass

Explore BrainMass

    Monopoly and Competition Problem

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The optimum market quantitiy in a competitive market if:
    P=100-.5q
    MR = 100-q
    Ac= 10$ per unit

    Is this the way you calculate it? If not, how do you do it?

    Profit =MC=MR

    10 = 100-q
    90 = q

    How do you then calculate the quantity brought to market by a monopolist?

    © BrainMass Inc. brainmass.com March 4, 2021, 6:15 pm ad1c9bdddf
    https://brainmass.com/economics/output-and-costs/37340

    Solution Preview

    The usual equilibrium of MR=MC is equally applicable to the monopolist. Here, MR = MC = AC.
    Therefore, 100 - q = 10
    or q = 100 - 10 = 90
    At this point the monopolist produces and supplies output quantity q = 90. This is the only profit-maximizing condition for ...

    $2.49

    ADVERTISEMENT