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ou are the manager of a monopoly, and your demand and cost functions are given by P = 300 - 3 Q and C (

ou are the manager of a monopoly, and your demand and cost functions are given byP= 300 - 3QandC(Q) = 1,500 + 2Q2, respectively.

a. What price-quantity combination maximizes your firm's profits?

Price: $

Quantity:units

b. Calculate the maximum profits.

$

c. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price-quantity combination?

multiple choice 1

  • Unit elastic
  • Inelastic
  • Elastic

d. What price-quantity combination maximizes revenue?

Price: $

Quantity:units

e. Calculate the maximum revenues.

$

f. Is demand elastic, inelastic, or unit elastic at the revenue-maximizing price-quantity combination?

multiple choice 2

  • Unit elastic
  • Inelastic
  • Elastic

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