Question
The following functions apply to a monopoly: TC = 500 + 10Q +2Q 2 MC = 10 + 4Q Demand: P = 100 - Q
The following functions apply to a monopoly:
TC = 500 + 10Q +2Q2
MC = 10 + 4Q
Demand: P = 100 - Q
MR = 100 - 2Q
The monopolist chooses their profit maximizing quantity.
Calculate their PROFIT.
Hint: remember Profit = TR - TC or Profit = (P - ATC)(Q)
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Macroeconomics
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
6th Canadian Edition
321675606, 978-0321675606
