This file of BUS 640 Week 4 Market Structures and Pricing Decisions Applied Problems comprises:
Market Structures and Pricing Decisions Applied Problems. Please, complete the following 2 applied problems in a Word or Excel document. Show all your calculations and explain your results. Submit your assignment in the drop box by using the Assignment Submission button.
1. What is the profit-maximizing price and output level? Solve this algebraically for equilibrium P and Q and also plot the MC, D and MR curves and illustrate the equilibrium point.
Since the business has a patent over the item, it can act as a monopolist while determining its profit maximizing level of output and price.