2. A monopoly faces the total revenue function TR = 300q – 2q? and the total cost function TC = 12q3 – 44q² + 60q + 30. a. Write down the monopoly firm's profit function (7) in its simplest form. b. Find the profit-maximizing quantity of output. C. Confirm that this quantity represents maximum profits.

Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter15: Monopoly
Section15.3: The Welfare Cost Of Monopolies
Problem 3QQ
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2. A monopoly faces the total revenue function TR = 300q – 2q² and the total cost function
TC = 12q3 – 44q² + 60q + 30.
a. Write down the monopoly firm's profit function (n) in its simplest form.
b. Find the profit-maximizing quantity of output.
c. Confirm that this quantity represents maximum profits.
Transcribed Image Text:2. A monopoly faces the total revenue function TR = 300q – 2q² and the total cost function TC = 12q3 – 44q² + 60q + 30. a. Write down the monopoly firm's profit function (n) in its simplest form. b. Find the profit-maximizing quantity of output. c. Confirm that this quantity represents maximum profits.
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