You are the manager of a monopoly, and your analysts have estimated your demand and cost functions as P = 300 − 3Q and C(Q) = 2, 000 + 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? (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?

You are the manager of a monopoly, and your analysts have estimated your demand and cost functions as P = 300 − 3Q and C(Q) = 2, 000 + 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? (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?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter25: Monopoly

Section: Chapter Questions

Problem 10E

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