A firm's short run total cost function is TC=0.75q² +8q + 300 The firm is monopolist and the inverse demand function for the product is p=201-2q a. Find the most profitable level of output and the profits at that output. b. When maximising profit, does the firm produce at minimum average cost? c. Find the breakeven points. d. Sketch the graphs of the inverse demand, marginal revenue and marginal cost functions with the same axes. e. Sketch the graphs of total cost and total revenue with the same axes. Sketch the graph of the profit function. Show the break-even points on both graphs.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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A firm's short run total cost function is
TC=0.75q² +8q+300
The firm is monopolist and the inverse demand function for the product is p=201-2q
a. Find the most profitable level of output and the profits at that output.
b. When maximising profit, does the firm produce at minimum average cost?
c. Find the breakeven points.
d. Sketch the graphs of the inverse demand, marginal revenue and marginal cost functions with the
same axes.
e. Sketch the graphs of total cost and total revenue with the same axes. Sketch the graph of the profit
function. Show the break-even points on both graphs.
Transcribed Image Text:A firm's short run total cost function is TC=0.75q² +8q+300 The firm is monopolist and the inverse demand function for the product is p=201-2q a. Find the most profitable level of output and the profits at that output. b. When maximising profit, does the firm produce at minimum average cost? c. Find the breakeven points. d. Sketch the graphs of the inverse demand, marginal revenue and marginal cost functions with the same axes. e. Sketch the graphs of total cost and total revenue with the same axes. Sketch the graph of the profit function. Show the break-even points on both graphs.
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