Problem: Consider a monopolist facing a market demand curve given by q = 186- p(q). The monopolist's fixed costs and variable costs are equal to Cf = 2400 and C(q) = q2/10 +10q, respectively.
Calculate:
a) The monopolist's price-quantity combination that maximizes profits and the level of profits obtained;
b) The monopolist's price-quantity combination that maximizes profits in case a fixed tax T = 1000 is introduced and the level of profits obtained;
c) The monopolist's price-quantity combination that maximizes profits in case a tax for each unit of product sold tq = 11 is introduced, the amount paid in taxes and the level of profits obtained after taxes;
d) The monopolist's price-quantity combination that maximizes profits in case a tax of the tπ = 50% on the profit is introduced; the amount paid in taxes and the level of profits obtained after taxes;
e) The monopolist's quantity and profits in case the government fixes a p = 90.