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VeRoo
Answers (2)
These are my final responses: a) Find the monopolist’s profit-maximizing output and price. Output is 225 and price is 50 MR = 500 − 2Q 50 =500 – 2Q -450 = -2Q 225 = Q (Profit maximizing quantity) P = 500 − 2Q P = 500 – 2(225) P = 500 – 450
This is what I got for the lender index: L = (P- MC) / P L = (225 - 50) /225 L = (175) / 225 L = 0.77
