Question: A monopolist's demand function is P = 1624 - 4Q and its total cost function is TC = 22000 + 24q - 4Q squared +

A monopolist's demand function is P = 1624 - 4Q and its total cost function is TC = 22000 + 24q - 4Q squared + 1/3Q cubed
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?

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a If the firm becomes a price maker then its profit maximizing condition is as follows Thus Input the value of Q in to the demand function to obtain P as follows b To maximize total revenue differentiate the total revenue function and equate to zero as follow ... View full answer

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