Assignment - 4

Assignment - 4



Assignment - 4

Question 1

a. The main property of monopoly is there is only one firm in the industry. It is the type of market which consists of only one seller and there is restriction on market entry. Therefore the firm demand curve is market demand curve (Hoag & Hoag, 2006).

To find profit maximization level first we need to find marginal cost (MC) and marginal revenue (MR) from demand curve. Here demand curve is Q= 6009 - 25P. from this demand curve we gets price function as P = 240.36 - .04Q. As we know revenues function ...