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Your mom is the monopoly supplier of jokes in (humorless) Ho Hum. She faces a demand curve and a marginal cost curve giv

Posted: Thu May 05, 2022 6:16 am
by answerhappygod
Your mom is the monopoly supplier of jokes in (humorless) Ho
Hum. She faces a demand curve and a marginal cost curve given by
following equations
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Demand: Q = 86 − 0.17P jokes per day
Marginal Cost: MC = 66 dollars per joke
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(a) Assume that jokes are perfectly divisible. Your
profit-maximizing mom would set a price of
[Answer] dollars per joke.
(b) Continue with the last question. The price elasticity
of demand at the profit-maximizing quantity is
[Answer].
(c) Continue with the last question. The markup at the
profit-maximizing quantity is [Answer]
percent.
(d) Continue with the last question. The markup at the
profit-maximizing quantity is [Answer]
percent.
(e) Continue with the last question. Compared to the
socially efficient quantity, monopoly pricing leads to a deadweight
loss of [Answer] dollars per day.