The inverse demand function for the first book on "Economics of Digital Public Infrastructure in India" is given by ; where, is the price of the book, and is the number of books purchased. The publisher's marginal cost is . The author's royalty is 25% of the total revenue. The optimal price of the book from the author's perspective is ______ (in integer)
GATE 2026 Question 43: Monopoly and price discrimination
Answer and worked solution
Checking your account…
Plain-text version
The inverse demand function for the first book on \"Economics of Digital Public Infrastructure in India\" is given by p=200-0.002Q; where, p is the price of the book, and Q is the number of books purchased. The publisher's marginal cost is 60+0.0168Q. The author's royalty is 25% of the total revenue. The optimal price of the book from the author's perspective is (in integer)
Monopoly and price discrimination has come up 128 times in 7 exams since 2004.
What this question tests
This question is on Monopoly equilibrium and marginal revenue, part of Monopoly and price discrimination in Microeconomics.
How a monopolist sets price and output where marginal revenue equals marginal cost.
TestStop has 43 past-paper questions on this subtopic; the nearest in year are below.
- GATE 2023 · Q65A monopolist is facing the demand function Q = 100/((P-1)), where Q is the quantity demanded and P is the…
- GATE 2021 · Q6XYZ Co. Ltd. is a costless monopoly from suburban Mumbai producing and selling exotic mushrooms. The demand…
- IIT JAM 2021 · Q11A monopoly canteen serves two groups with demands Q_X = 200 - 4P and Q_Y = 300 - P, where P is the uniform…
- IIT JAM 2021 · Q29A monopolist faces a downward sloping linear market demand and his variable cost of production is zero. The…
Similar questions from other papers
- Given below are two statements: Assertion A: Monopoly power is the ability to set price above marginal cost and that the amount by which price exceeds marginal cost…
- A monopolist sells different units of output for different prices, but every individual who buys the same quantity of the good pays the same price. It is known as price…
- If AR = 15 - Q, then the value of Marginal Revenue will be:
- The inverse demand function for a monopolist is given by P = 100 - kQ where P is the unit price of the good, Q is the quantity and k is a constant. The cost function…
- Which one of the following is CORRECT in the context of a natural monopoly?
Question from the GATE 2026 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.