Consider a monopolist in the market for designer sneakers. The market demand curve is given by P = 600 – 3Q. The firm’s current price is $200 and the…

/in /by

Consider a monopolist in the market for designer sneakers. The market demand curve is given by P = 600 – 3Q. The firm’s current price is $200 and the rm sells 50 units of output.

a. Use the monopolist markup formula to calculate marginal revenue at the current price/quantity.

b. If the firm’s marginal cost is zero, is the firm maximizing profits? If Yes, justify your answer. If No, explain whether the firm should increase or decrease output.

Need your ASSIGNMENT done? Use our paper writing service to score good grades and meet your deadlines.


Order a Similar Paper Order a Different Paper