a Assume a monopolist faces a market demand curve P=80-Q and has the short-run total cost function TC=730+10Q. A. What i

[answerhappygod]

A Assume A Monopolist Faces A Market Demand Curve P 80 Q And Has The Short Run Total Cost Function Tc 730 10q A What I 1 (162.75 KiB) Viewed 48 times

a Assume a monopolist faces a market demand curve P=80-Q and has the short-run total cost function TC=730+10Q. A. What is the profit-maximizing level of output and the market price? B. Calculate the mark-up of the monopolist using the Lerner Index. Interpret your result. C. Using the result from part B, what is the elasticity of demand at the monopolist price? Interpret your result. D. Will the monopolist produce or shutdown? Explain why and show using the shutdown rule. E. Calculate the profit or loss incurred by the monopolist. F. What would happen in the long run if the government regulated this market and set the price at $15 and why? Show work to support your answer.