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# To maximize profits in a competitive market set price equal to marginal cost But in a monopoly you set marginal revenue equal to marginal cost

To maximize profits in a competitive market set price equal to marginal cost. But in a monopoly, you set marginal revenue equal to marginal cost. Based on the given information, answer the following questions. Total Revenue = 100Q – 10Q² Marginal Revenue = 100 – 20Q Total Cost = 20 + 10Q Marginal Cost = 10 Note: Competitive Market: To maximize profits set Price = Marginal Cost Monopoly Market: To maximize profits set Marginal Revenue = Marginal Cost a.What price do you charge if you are in a competitive market? b.What quantity do you produce if you are in a competitive market? c.What profits do you make in a competitive market? d.What price do you charge if you are in a monopoly? e.What quantity do you produce if you are in a monopoly? f.What profits do you make if you are in a monopoly? g.Would you rather be in a competitive market or monopoly? Why?

Apr 21 2020 View more View Less

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