Problem
1. Explain why a firm which is a monopoly seller in a market with the demand schedule p = 66.8 - 0.4q and which faces the total cost schedule
TC = 220 + 120q - 12q2 + 0.5q
can never make a positive profit.
2. What is the maximum profit a firm can make if it faces the demand schedule p = 660 - 3q and the total cost schedule TC = 25 + 240q - 72q2 + 6q3?
3. If a firm faces the demand schedule p = 53.5 - 0.7q, what price will maximize profits if its total cost schedule is TC = 400 + 35q - 6q2 + 0.1q3?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.