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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.

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Solution Summary

The decision rule for monopoly is utilized.

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 ...

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