# A market (or industry) demand curve is described by Q = 600 - 0.5P. The monopolist firm's cost...

## Question:

A market (or industry) demand curve is described by {eq}Q = 600 - 0.5P {/eq}. The monopolist firm's cost function is {eq}TC = 8,550 + 20Q {/eq}.

A) Find the profit-maximizing quantity and price.

B) If the monopoly is dissolved and then the market becomes perfectly competitive, how much more quantity will be produced?

## Monopoly:

Monopoly is a type of market structure in which there is just a single seller in the market. The monopolist caters to the entire market demand and has the complete power to decide the amount of output and price of the good.

## Answer and Explanation: 1

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View this answer**A.** Given,

Q = 600 - 0.5P

0.5P = 600 - Q

P = 1200 - 2Q

Multiplying Q on both sides of th above equation,

P *Q = 1200Q - 2Q^2

TR = 1200Q - 2Q^2

D...

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Chapter 7 / Lesson 2Understand the meaning of a monopoly in economics and what it does. Also, know the characteristics of a monopoly and the different types of monopolies.

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