Question
You are the manager of a monopoly, and your demand and cost functions are given by P = 300 - 3 Q and C (
You are the manager of a monopoly, and your demand and cost functions are given byP= 300 - 3QandC(Q) = 1,500 + 2Q2, respectively.
a. What price-quantity combination maximizes your firm's profits?
Price: $
Quantity:units
b. Calculate the maximum profits.
$
c. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price-quantity combination?
multiple choice 1
- Elastic
- Inelastic
- Unit elastic
d. What price-quantity combination maximizes revenue?
Price: $
Quantity:units
e. Calculate the maximum revenues.
$
f. Is demand elastic, inelastic, or unit elastic at the revenue-maximizing price-quantity combination?
multiple choice 2
- Inelastic
- Elastic
- Unit elastic
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Essentials Of Advanced Macroeconomic Theory
Authors: Ola Olsson ]
1st Edition
9780415685085
