Find the profit maximizing price, quantity, producer and consumer surplus.

Economics
Tutor: None Selected Time limit: 1 Day

Illinois' daily demand for cans of diet cola is given by 10,000,000[2.00-P]. The accompanying marginal cost is $.40 per can. This implies that if Q cans of cola are sold, the corresponding price is P=2-Q/10,000,000. It turns out that the monopolist's marginal revenue is given by MR=2-[Q/5,000,000]. The Governor sold Coke a Monopoly across the state. a.) Graph Coke's demand, marginal cost, and marginal revenue curves. b.) Find the profit-maximizing price, quantity, producer and consumer surplus.

May 18th, 2015

10,000,00(2.00-p)

marginal cost 40 dollars

p=2-Q/10,000,000

MR=2-(Q/5,000,000)


May 18th, 2015

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May 18th, 2015
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May 18th, 2015
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