Question
You are the manager of a monopoly, and your demand and cost functions are given by P = 200 2Q and C(Q) = 1,400 +
You are the manager of a monopoly, and your demand and cost functions are given by P = 200 2Q and C(Q) = 1,400 + 2Q2, respectively.
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?
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International Trade
Authors: John McLaren
1st edition
0470408790, 978-0470408797
