Question: 1. A monopoly faces the total revenue schedule TR = 300q - 2q2 and the total cost schedule TC = 12q3 - 44q2 + 60q + 30
Are there two output levels at which MC = MR? Which is the profit-maximizing output?
2. If a firm faces the demand schedule p = 120 - 3q and the total cost schedule TC = 120 + 36q + 1.2q2 what output levels, if any, will
(a) maximize profit, and
(b) minimize profit?