Your firm's cost function is:
C = 1.6Q(third) - 10Q(squared) + 484Q + 3,969
Your firm faces the following demand:
P = 3,298 - 25Q
Your firm is a monopoly. Find the quantity, Q, that maximizes profit. Round your answer to one decimal.
Profit Maximizing Monopoly Output:
We find profit maximizing monopoly profit by equating marginal revenue with marginal cost...
Answer and Explanation:
We know for a monopoly firm the profit maximizing output can be found by equating MR with MC.
We get MR by differentiating TR with quantity(Q)
See full answer below.
Become a member and unlock all Study Answers
Try it risk-free for 30 daysTry it risk-free
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
from Intro to Business: Help and ReviewChapter 3 / Lesson 13