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statement powerboats
How do I solve this question from my economics course?
Can someone help me with this question I've got on my economics course. It's not a question from any test and it's not my homework. I'd just like to understand how these things work so I am able to answer similar questions in the future : )
You run a business that manufactures powerboats. Through personal contacts with
politicians, you've got a patent to ensure that you in the coming years have a monopoly on the
market in Sweden.
a) Show graphically the amount of boats that maximizes the monopolist's revenue.
b) Show graphically the amount of boats that maximizes the welfare of society.
c) Show graphically the amount of boats that maximizes the monopolist's profits.
I know this question. All of that answer given below are correct but you have to give the best answer among those answer.
The most reasonable answer would be
A) Show graphically the amount of boats that maximizes the monopolist's revenue.
A politician will mostly care of how your income statement works and how much benefit they would gain.
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Statement Power Boat in action!
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