If a monopolist produces q units, she can charge 100 - 4q dollars/unit. The fixed cost of production is $50, and the variable per-unit cost is $2. How can the monopolist maximize profits? If a sales tax of $2/unit must be paid by the monopolist, then would she increase or decrease production?

Answer rating: 100% (QA)

Formulate the problem as a Non Linear Problem and solve it to find its solution Here the problem shall occur in single variable q which denotes the nu... View the full answer