a monopolists demand function is given byp 80 -


A monopolist's demand function is given by

P = 80 - 3Q

(with MR = 80 - 6Q).

Its total cost function is

 

TC = 20Q + 200

(with MC = 20).

Using algebra determine the profit maximizing output, price and optimal profit for the firm. 

(ii) Suppose that instead of maximizing profit, the firm wants to maximize total revenue. Using algebra determine the optimal output, price, profit and revenue for the firm.

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: a monopolists demand function is given byp 80 -
Reference No:- TGS0486167

Expected delivery within 24 Hours