Week 9 - Monopoly Flashcards
1
Q
How do you find the equilibrium of a monopoly market?
A
MR=MC
2
Q
How do you find MR in a monopoly market?
A
Double the steepness of the demand curve
example:
if P= 24 - Qm => MR = p 24 - 2Qm
3
Q
How do you calculate the loss/profit accountable to a price change?
A
dP(q)/q x q
4
Q
How is price calculated in a monopoly?
A
P(q)
5
Q
How do you maximise profit in a monopoly market?
A
set MR-MC = 0
