Suppose you are a monopolist in the market for a specific video game. Your demand curve is given by P=80-Q/2, and your marginal cost curve is MC=Q. Your fixed cost is $400.
i) Derive the marginal revenue curve
ii) Calculate the equilibrium price and quantity
iii) What is the profit?
Suppose a cinema is a local monopoly whose demand curve for adult tickets on Saturnday night P=12-2Q, where P is the price of a ticket in dollars and Q is the number of ticket sold in hundreds. The marginal cost for adult is $2
i) What is the marginal revenue cost in the market?
ii) What price should the cinema charge in the markets if its goal is to maximize profits?