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    Monopoly and Competition Problem

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    The optimum market quantitiy in a competitive market if:
    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?

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    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 ...