Question
You are the manager of a monopoly, and your analysts have estimated your demand and costs functions as P = 300 - 3 Q and
You are the manager of a monopoly, and your analysts have estimated your demand and costs functions as P = 300 - 3Q and C(Q) = 1,500 + 2Q2.
a. What price-quantity combination maximizes your firm's profits?
b. Calculate the maximum profits?
c. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price-quantity combination?
d. What price-quantity combination maximizes revenue?
e. Calculate the maximum revenues.
f. Is demand elastic, inelastic, or unit elastic at the revenue-maximizing price-quantity combination?
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Research Methods Design And Analysis
Authors: Larry Christensen
13th Edition
0205961258, 978-0205961252
