You are the general manager of the red dog mine which is


You are the general manager of the Red Dog mine, which is the sole operator in Alaska selling copper. You have a maximum of S =1,000 tons available to sell this year and next year, and the demand for copper will be constant at p q = ? 1,000 each year, where p is the price in dollars per ton and q is the number of tons. Your marginal cost of mining and marketing copper is also constant at $200 per ton, and

your discount rate is r = 0.1. Describe the quantities you would market this year and next year, the market prices, and your producer surplus if you price your copper

(a) like a perfect competitor;

(b) like a monopolist.

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Business Economics: You are the general manager of the red dog mine which is
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