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The manager of a monopoly firm obtained the following estimate of the demand function for its output: Q = 3,000 100P + 0.25M +36P R
The manager of a monopoly firm obtained the following estimate of the demand function for its output:
Q = 3,000 100P + 0.25M +36PR
From an econometric forecasting firm, the manager obtained forecasts for the 2018 values of M and PRas, respectively, $50,000 and $2.50.
The manager also estimated the average variable cost function as
AVC = 10.10 0.07Q + 0.0002Q2
where AVC was measured in dollars per unit and Q is the number of units sold.
The optimal level of production in 2018 is _____ units.
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