Posted by Michelle on .
Suppose the demand curve for a monopolist is Qd = 500 – P, and the marginal revenue function is MR = 500 -2Q. The monopolist has a constant marginal and average total cost of $50 per unit.
A. Find the monopolist’s profit- maximizing output and price.
B. Calculate the monopolist’s profit.
C. What is the Lerner Index for this industry? The Lerner Index for this industry is