1. CLARA is a producer in a monopoly industry. Her demand curve, total revenue curve, marginalrevenue curve, total cost curve and marginal cost curve are given as follows:P = 40 – Q [or, Q = 40 – P],TR = 40Q – Q2, MR = 40 – 20, TC = 20 + Q2, MC = 20a) Find the profit-maximizing level of output for CLARA.b) Find level of profit.c) Can CLARA earn a positive long-run economic profit? Why? Why not?

P = 40 - Q [or, Q=40-P] TR = 40Q - Q² MR = 40 - 2Q , TC = 20 + Q² MC = 20

1. CLARA is a producer in a monopoly industry. Her demand curve, total revenue curve, marginal revenue curve, total cost curve and marginal cost curve are given as follows: P = 40 – Q [or, Q = 40 – P], TR = 40Q – Q?, MR = 40 –- 2Q, TC = 20 + Q2², MC = 20 a) Find the profit-maximizing level of output for CLARA. b) Find level of profit. c) Can CLARA earn a positive long-run economic profit? Why? Why not?

1. CLARA is a producer in a monopoly industry. Her demand curve, total revenue curve, marginal revenue curve, total cost curve and marginal cost curve are given as follows: P = 40 – Q [or, Q = 40 – P], TR = 40Q – Q?, MR = 40 –- 2Q, TC = 20 + Q2², MC = 20 a) Find the profit-maximizing level of output for CLARA. b) Find level of profit. c) Can CLARA earn a positive long-run economic profit? Why? Why not?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter14: Monopoly

Section: Chapter Questions

Problem 14.5P

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