Consider a market with the following demand function: P = 100 – Q. There is a monopolist firm wit the following total cost function: CM = 60 + 10QM There is potential firm that plans to enter to the market, and its total cost function is as follows: Cp = 100 + 20QM. What is the limit price the monopolist firm could set? (Note: Assume Q-setting, Cournot model.) а.50 b.45 С.40 d.55 |

Consider a market with the following demand function: P = 100 – Q. There is a monopolist firm wit the following total cost function: CM = 60 + 10QM There is potential firm that plans to enter to the market, and its total cost function is as follows: Cp = 100 + 20QM. What is the limit price the monopolist firm could set? (Note: Assume Q-setting, Cournot model.) а.50 b.45 С.40 d.55 |

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter14: Monopoly

Section: Chapter Questions

Problem 14.5P

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