Essay
A monopolist's demand function is P = 1624 - 4Q,and its total cost function is
TC = 22,000 + 24Q -4Q2 + 1/3 Q3,where Q is output produced and sold.
a.At what level of output and sales (Q)and price (P)will total profits be maximized?
b.At what level of output and sales (Q)and price (P)will total revenue be maximized?
c.At what price (P)should the monopolist shut down?
Correct Answer:
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a.Total Profits are maximized where MR =...View Answer
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