I’m working on a economics question and need an explanation to help me study.
Answer the following question:
Q1: In Monopolistic Market, the following figure illustrates the situation facing the publisher of the only newspaper containing local news in an isolated community.
The publisher’s marginal cost for the new plant is constant at 20 cents per copy printed. a. What quantity of newspapers will maximize the publisher’s profit?
b. What price will the publisher charge for a daily newspaper?
c. What is the publisher’s daily total revenue?
d. At the price charged for a newspaper, is the demand for newspapers elastic or inelastic? Why?