A monopolist has demand and cost curves given by:
Q = 1,000 - 0.25P
TC = 500 + 50Q + Q2
Show work for all parts:
a. Find the equation for the inverse demand curve (P as a function of Q).
b. Show the total revenue function.
c. Show the marginal revenue function.
d. Show the marginal cost function.
e. Find the profit-maximizing output (Q) by using first- and second-order conditions for the profit function.
f. Use the inverse demand curve to find the profit-maximizing price.
g. Calculate the maximum profit for the monopolist.