A monopolist's demand fQuestion 1.
unction is given as Y=2000-10K, where Y is the quantity of output produced and sold and K is the price per unit in Tshs. If the marginal cost is Tshs 100
Calculate the monopolist's equilibrium quantity and price.
Suppose the Monopolist behaves competitively, how would the answers in a) above change?
Show the inefficiency caused by the above monopolist diagrammatically and mathematically.
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