You are the manager of a monopoly, and your analysts have estimated your demand and cost functions asP = 500 3Q and C(Q) = 1,500+ 3Q², respectively.

a. What price-quantity combination maximizes your firm's profits?

Instructions: Round your response to the nearest penny (two decimal places).

Price: $

Quantity: units

b. Calculate the maximum profits.

Instructions: Round your response to the nearest penny (two decimal places).

$

c. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price-quantity combination?

multiple choice 1

• Unit elastic
• Elastic
• Inelastic

d. What price-quantity combination maximizes revenue?

Instructions: Round your response to the nearest penny (two decimal places).

Price: $

Quantity: units

e. Calculate the maximum revenues.

Instructions: Round your response to the nearest penny (two decimal places).

$

f. Is demand elastic, inelastic, or unit elastic at the revenue-maximizing price-quantity combination?

multiple choice 2

• Elastic
• Inelastic
• Unit elastic