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2. (10%) HEYTEA has a monopoly on Bubble Tea in city A's local market. The demand is: Q=220-4P. The resulting marginal r
Posted: Mon Apr 18, 2022 9:11 am
by answerhappygod
- 2 10 Heytea Has A Monopoly On Bubble Tea In City A S Local Market The Demand Is Q 220 4p The Resulting Marginal R 1 (64.46 KiB) Viewed 76 times
2. (10%) HEYTEA has a monopoly on Bubble Tea in city A's local market. The demand is: Q=220-4P. The resulting marginal revenue function is: MR=55-Q/2. HEYTEA's marginal cost of producing bubble tea is: MC(Q)=7+Q/4. a. Calculate HEYTEA's profit maximizing output and price. Find out the consumer surplus and the producer surplus. b. Calculate the social cost of HEYTEA's monopoly power.