1. What is the quantity the monopolist should produce to maximize profits? And the price? 2. Compute the amount of profit the monopolist will get. 3. Show what happens if the monopolist maximizes revenue instead of profit.

1 Problem 1 A monopolist faces the following inverse demand function: P(Q) = 16000 - 4Q. The total costs for this firm are C(Q) = 6000 + 400Q + 2Q2. 1. What is the quantity the monopolist should produce to maximize profits? And the price? 2. Compute the amount of profit the monopolist will get. 3. Show what happens if the monopolist maximizes revenue instead of profit