1.Suppose the monopolist faces a market demand function given by Q = 50-0.5P. The firm

has a fixed cost of $50 and its variable cost is given as TVC =Q²

a. Determine the profit maximizing unit of output and price.

b. The maximum profit.

2.Suppose a cost function given by C(Q)=2Q² +Q+30, the Total fixed cost of producing

10 units is

A. 240 B. 30 C. 3 D.24 E. None

3.As a firm produces additional units of output, one of the following cost always increases

A. Average total cost C. Total fixed cost

B. Average fixed cost D. Average variable cost E. None