Question
ECONOMICS
A monopolist sells good Q and demand is Q = 10 - P, where P is price. The firm must choose to produce Q = 1, 2, 3 or 4 units of output. Assume that MC is $2.95. In this case, the optimal Q* for the monopolist is _____ units, and the resulting area of the triangle for deadweight loss is _____.
(show all work)
a) 3: 4.65
b) 3; 5.55
c) 4; 5.55
d) 4; 4.65
THANK YOU!!
A monopolist sells good Q and demand is Q = 10 - P, where P is price. The firm must choose to produce Q = 1, 2, 3 or 4 units of output. Assume that MC is $2.95. In this case, the optimal Q* for the monopolist is _____ units, and the resulting area of the triangle for deadweight loss is _____.
(show all work)
a) 3: 4.65
b) 3; 5.55
c) 4; 5.55
d) 4; 4.65
THANK YOU!!