Social Security and Medicare expense issues have been the topic of various pending doom scenarios with competing projections that the system will be
September 3, 2020
If a household’s income rises from $46,000 to $46,700 and its consumption spending rises from $35,800 to $36,400, then its A) marginal propensity to…
September 3, 2020

Stone Co. is the only automobile producer in Orange County. The market demand for automobiles in Orange County is given by P = a-bQ, where a and b are positive constants, P denotes market price and Q denotes the number of automobiles purchased by customers. Stone Co. has a cost function C(q) = cq where c is a constant and q denotes the amount of output produced by Stone Co. Assume a>c>0 and b>0.Write down the optimization problem for the Stone Company. Then determine the amount of output produced by Stone Company. How much profit will Stone Company make when it acts as a monopolist?

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