In a market, the demand is Q = 50 P . A monopoly company

operating in this market has the cost function C = 15Q.

(a) Illustrate demand, marginal cost, and marginal revenue in

a gure.

(b) What is the prot-maximizing quantity? Explain why. What is the price thus? Illustrate in the gure.

(c) Now suppose that the cost function is instead C = F + Q2, which means that the xed cost is F and MC = 2Q. How big is the prot-maximizing quantity in this case? What's the price? Illustrate in the gure, or in a new gure.

(d) What will be the prot if F = 150? What value on F would result in a prot equal to zero?