Demand and cost functions

You are the manager of a monopoly, and your demand and cost functions are given by P = 300 – 3Q and C(Q) = 1,500 + 2Q2, respectively.

a. What price–quantity combination maximizes your firm’s profits?

Price: $[removed]
Quantity: [removed]units

b. Calculate the maximum profits.


d. What price–quantity combination maximizes revenue?

Price: $[removed]
Quantity: [removed]units

e. Calculate the maximum revenues.


A firm sells its product in a perfectly competitive market where other firms charge a price of $90 per unit. The firm’s total costs are C(Q) = 40 + 10Q + 2Q2.

a. How much output should the firm produce in the short run?


b. What price should the firm charge in the short run?


c. What are the firm’s short-run profits?



Looking for help with your homework?
Grab a 30% Discount and Get your paper done!

30% OFF
Turnitin Report
Title Page
Place an Order

Grab A 14% Discount on This Paper
Pages (550 words)
Approximate price: -