A monopolist faces the demand curve P = 18 – Q, where P is measured in rands per unit and Q in thousands of units. The monopolist has a constant average cost of R6 per unit. 1. What are the monopolist’s profit-maximising price and quantity and what is its resulting profit?
A monopolist faces the demand curve P = 18 – Q, where P is measured in rands per unit and Q in thousands of units. The monopolist has a constant average cost of R6 per unit. 1. What are the monopolist’s profit-maximising price and quantity and what is its resulting profit?
Chapter8: Monopoly
Section: Chapter Questions
Problem 10SQP
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A monopolist faces the demand curve P = 18 – Q, where P is measured in rands per unit and Q in thousands of units. The monopolist has a constant average cost of R6 per unit.
1. What are the monopolist’s profit-maximising price and quantity and what is its resulting profit? (8)
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