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price and quantity supplied

Problem:

Given 3 equations:

MR = 500 - 10Q
TR = 2000Q - (20Q)(20Q) didn't know how to put in squared
MC = 200 + 10Q

Calculate the following:

A. The price and quantity supplied for the monopolist
B. The price and quantity supplied for the perfect competitor.

Solution Preview

a) The decision rule for monopoly is find the quantity where MC=MR and then look for the price at that point.
MR=500-10Q
MC=200+10Q
Equating both we get Q=15

Now TR=P*Q, so ...

Solution Summary

The decision rule for monopoly is utilized.

$2.19