Question
Please indicate which part of the question you answer and show your work. You are the manager of a monopoly. Your demand function is the
Please indicate which part of the question you answer and show your work.
You are the manager of a monopoly. Your demand function is the following:
P = 240 - 2Q
Your cost function is:
TC = 2000 + 2Q2
a. What price-quantity combination maximizes your firm's profits?
b. Calculate the maximum profits.
c. Is demand elastic, inelastic or unitary elastic at the profit-maximizing price-quantity combination?
d. What price-quantity combination maximizes revenue?
e. Calculate the maximum revenue.
f. Is demand elastic, inelastic, or unitary elastic at the revenue-maximizing price-quantity combination?
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