Question
Given a monopolist with a maximum output of Q = 180 (Q is measured in tones of iron per day and can only take negative
Given a monopolist with a maximum output of Q = 180 (Q is measured in tones of iron per day and can only take negative values). The monopolist's demand curve looks like
Q= 200 - 1/2 * P (* = times)
where "P" denotes the price of iron ore measured in dollars per tone,
and the total cost of producing iron ore is:
TC= 400
The variable TC is measured in dollars per day
(in this question the government is incurring all variable costs of producing the iron ore but the monopolist gets all the money from selling the iron ore)
How much money per day does the monopolist make when total profit is maximized?
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