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Suppose that a meat market is serviced by a monopolist. Consumers' preferences in this market are...

Suppose that a meat market is serviced by a monopolist. Consumers' preferences in this market are summarised by P=-55q+997

The monopolist has the following marginal cost function MC(q)=150+39q

What is the optimal quantity the monopolist will supply the market __ (Answer is 847/149, how did they get that?) and what is the price the monopolist will set___ ? (Answer is 101968/149, how did they get that?)

What are the profits accumulated by the monopolist? (Answer is 2407, how did they get that?)

Now suppose the market is supplied by perfectly competitive firms with the same aggregate cost structure as the monopolist.

What is the optimal quantity the perfect competitive industry will output ___ (Answer is 847/94, how did they get that?) and what is the prevailing price ___? (Answer is 47133/94, how did they get that?)

What are the profits accumulated by the perfectly competitive industry? (Answer is 27978951/17672, how did they get that?)

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