1) Consider a monopoly with the curves:

TC=36+Q2

MC=2Q

Demand: P=963Q

MR=966Q

When this firm is maximizing its profit, it chooses a quantity of ________ , a price of _______ , and earns a profit of _______ .

2) graph of a monopolist as well as the profit-maximizing quantity, price, and a positive profit. Make sure to draw and label:

1. The marginal cost (MC) and average cost (AC) curves (you will lose this one if they don't intersect correctly!)

2. Demand (D) and marginal revenue (MR)

3. The profit-maximizing quantity (Q)

4. The profit-maximizing price (P)

5. The average cost value (AC*)

6. The profit (Profit)