问答题
A plastics monopolist faces the demand curve P=180 - Q, where Q is measured in thousands of pounds per year and P is measured in dollars per pound. Marginal cost is constant at MC=＄60 per pound.
(a)Find the monopolist's profit-maximizing price and quantity.
(b)What is the elasticity of demand at the profit-maximizing price?
【正确答案】
【答案解析】(a)Set MR=MC, or 180-2Q=60 to find Q* =60 and P* =180-60=120. (b)The point
elasticity of demand at P* = 120 is Ed=-bP/Q=-1 (120/60)=-2. As is
always true with linear demand, the monopolist produces in the elastic portion
of the demand curve.