The monopolist faces a demand curve given by D(p) =10p^-3 Its cost
function is c(y) = 2y. What is its optimal level of output and price?
2 answers
The monopolist's optimal level of output is y* = 5 and the optimal price is p* = 2.
The monopolist faces a demand curve given by D(p) = 200 - p ,Its cost
function is c(y) = 2y. What is its optimal level of output and price?
function is c(y) = 2y. What is its optimal level of output and price?
5 answers