Please assist with the given economics problem. Give step by step computations.
You are the manager of a firm that sells its product in a competitive market at a price of 50. Your firms cost structure is c=40 + 5Q2.
The profit maximizing output for your firm is one of the following:
4/5
10
5
45
Suppose a monopolistic knows the own-price elasticity of demand for its product is -3 and its marginal cost of production is constant MC(Q) = 10. To maximize its profits, the monopoly price is:
1.50 per unit
6.67 per unit
10.00 per unit
15.00 per unit