Question: A monopoly has a demand and cost functions as below: P = 300- 3Q and C (Q) = 1500+ 2 Q 2 To maximize profit

A monopoly has a demand and cost functions as below:

P = 300- 3Q and

C (Q) = 1500+ 2 Q2

  1. To maximize profit at what price-quantity combination this monopoly operates?
  2. What is the maximum profit earned by this monopoly?
  3. At what price-quantity combination this monopoly is maximizing its revenues?

(optional): if you cannot solve leave it) is the demand elastic, inelastic or unit elastic at the profit maximization price-quantity combinations?

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