You are the manager of a monopoly and your demand and the cost function are given by P = 300 – 3Q And C (Q) = 1,500 + 2Q2 Respectively.
a. What price-quantity combination maximizes your firm’s profit?
b. Calculate the maximum profit
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?