Market demand for a given year is qd 3162277660p-125


Market demand for a given year is QD = 31,622,776.60·P^-1.25. Solving the function for price yields inverse demand: P = 1,000,000·Q^-0.8. Therefore, marginal revenue is MR = 200,000·Q^-0.8. If the monopolist has a total fixed cost of $2,000,000 and a constant marginal cost of $20 and must charge a single price, calculate the market price and quantity and the monopolist’s total variable cost. How much profit does the monopolist make? Show your calculations and answers.

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Business Economics: Market demand for a given year is qd 3162277660p-125
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