6. A monopolist can produce at a constant average (and marginal) cost of AC = MC = $5. It faces a market demand curve given by Q = 53 – P.
a. Mark the profit-maximizing price and quantity for this monopolist, the Cournot equilibrium, the Stackelberg equilibrium and calculate the monopolist’s profits and how much will each firm produce, and what will its profit be.
Dear Student Please find... View the full answer