With the relevant equations, we can also compute the competitive and monopoly equilibria using algebra. Suppose that the market for bell peppers consists of a single firm. The market demand curve is assumed to be Demand : P = 9 - 2Q The marginal cost is MC = Q The marginal revenue is MR = 9-4Q Using this information, fill in the blanks with a numerical answer. The efficient (or competitive market equilibrium) output is Q= type your answer... type your answer... The monopoly outcome is a Q= type your answer... and the price is P= and a monopoly price P= type your answer...
With the relevant equations, we can also compute the competitive and monopoly equilibria using algebra. Suppose that the market for bell peppers consists of a single firm. The market demand curve is assumed to be Demand : P = 9 - 2Q The marginal cost is MC = Q The marginal revenue is MR = 9-4Q Using this information, fill in the blanks with a numerical answer. The efficient (or competitive market equilibrium) output is Q= type your answer... type your answer... The monopoly outcome is a Q= type your answer... and the price is P= and a monopoly price P= type your answer...
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter11: Price And Output Determination: Monopoly And Dominant Firms
Section: Chapter Questions
Problem 4E
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Step 1: Describe the market
In perfect competition ,
There exists large no. of sellers and buyers.
Incase of monopoly , there exists a single seller.
Equilibrium in competitive market is where P = MC
And the Profit maximizing quantity of monopoly is where the MR = MC
P is the market price.
MR is the marginal revenue.
MC is the marginal cost.
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