Question
The estimated demand, single production and total costs functions for a monopolist are as follows P = $840 - $0.04Q TC = $260 + $50Q
The estimated demand, single production and total costs functions for a monopolist are as follows
P = $840 - $0.04Q
TC = $260 + $50Q + $0.02 Q2
Where, Q is output in thousands of units.
a. What is the profit maximising level of activity and price for this company?
b. What is the maximum profit for this company?
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Microeconomics
Authors: Robert Pindyck, Daniel Rubinfeld
8th edition
978-0132870436, 132870436, 013285712X, 978-0133371178, 133371174, 978-0132857123
