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
given that MR = 500 - 2Q and marginal cost is 50. we can solve for the profit ...
The expert examines monopolist company analysis.