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    Monopolist comapny analysis

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    Suppose the demand curve for a monopolist is Qd=500-P, and the marginal revenue function is MR=500-2Q. The firm has a marginal and average total cost of $50per unit.
    1) Find the firm's profit maximizing output and price.
    2) Calculate the firm's profit
    3) What is the Lerner Index

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    Solution Preview

    given that MR = 500 - 2Q and marginal cost is 50. we can solve for the profit ...

    Solution Summary

    The expert examines monopolist company analysis.