A cable company has a monopoly over the cable services, Econometrics

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A cable company has a monopoly over the cable services

A cable company has a monopoly over the cable services industry in Rhode Island. The market demand curve for cable is P = 1000 - Q, where Q, the firms output, is here the number of hundreds of households with cable. The cost of supplying Y hundred households with cable is TC(Q ) = 500 - 50Q + 2Q*Q. MR=1000-2Q and MC=4Q-50.

a. Find the level or output.
b. What is price in equilibrium?
c. What is the DWL due to the monopolist?

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Econometrics: A cable company has a monopoly over the cable services

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Econometrics: A cable company has a monopoly over the cable services

Reference No:- TGS0577140

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Reference No:- TGS0577140

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