Harry Smith owns a metal-producing firm that is an unregulated monopoly. After considerable experimentation and research, he finds that the firm's marginal cost curve can be approximated by a straight line, MC = 60 + 2Q, where MC is marginal cost (in dollars) and Q is output. The demand curve for the product is P = 100 - Q, where P is the product price (in dollars) and Q is output.
a. If Smith wants to maximize profit, what output should he choose?
b. What price should he charge?