question 3

Question 3 (7 Marks) Part a) (3 marks) Suppose a firm has the following total cost function TC = 100 + 2q. If price equals $20, what is the firm's output decision? ii) What are its short-run profits? Part b) (4 marks) Given the demand and cost equations of this monopolistic firm: Demand: P=50-Q and Total Cost: TC=80+200+2 i) What is the marginal revenue ii) Find the profit-maximizing quantity and price iii) What is the total profit of the monopolist