Julee has estimated the demand and marginal revenue for her product. They are P = 100 − 2Q (quantity) and MR = 100 − 4Q, respectively. She also experiences constant marginal cost of $16.

Question

Julee has estimated the demand and marginal revenue for her product. They are P = 100 − 2Q (quantity) and MR = 100 − 4Q, respectively. She also experiences constant marginal cost of $16.
​a.​Does Julee have any market power? How can you tell?
​b.​What is Julee’s profit-maximizing quantity?

test · Answer

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