A monopoly firm has the following demand curve: Q = 2,000 25P where Q is its

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Question:

A monopoly firm has the following demand curve:

Q = 2,000 – 25P

where Q is its monthly output. Assuming its monthly short-run total cost is described by the function

STC = 500 + 8Q + 0.035Q²

Answer the following questions:

What will be its profit-maximising price and output?

How much profit will it have at the preceding output?

Related Book For answer-question

Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

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Posted Date: Jul 01, 2020 12:56 PM

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A monopoly firm has the following demand curve: Q = 2,000 25P where Q is its

Question:

Expert Answer:

a The profit maximising condition is found where MC MR Since TC 500 8Q 0035Q2 MC dT... View the full answer

Microeconomics

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