What is the monopoly price what is the monopoly


Firm A is the sole producer of a sport drink. A's marginal cost equals average cost M C = A0 = 30, and it faces market demand given by inverse demand function P = 120 - 0.562.

(1) Suppose A produces quantity q = 140 units at price p = 50. Is there any dead weight loss at current price and quantity? If yes, how much is the DWL?

(2) What is the monopoly price? What is the monopoly DWL?

Solution Preview :

Prepared by a verified Expert
Basic Computer Science: What is the monopoly price what is the monopoly
Reference No:- TGS02547906

Now Priced at $20 (50% Discount)

Recommended (94%)

Rated (4.6/5)