Question: Suppose that the demand function for a product produced by a monopolist is given by the equation Q = 6.67 - 0.33P Suppose further that

Suppose that the demand function for a product produced

by a monopolist is given by the equation

Q = 6.67 - 0.33P

Suppose further that the monopolist's total cost of production function is

given by the equation

TC = 2Q2

a. Find the output level that will maximize profit ().

b. Determine the monopolist's profit at the profit-maximizing output level.

c. What is the monopolist's average revenue (AR) function?

d. Determine the price per unit at the profit-maximizing output level.

e. Suppose that the monopolist was a sales (total revenue) maximizer.

Compare the sales maximizing output level with the profit-maximizing output level.

f. Compare total revenue at the sales-maximizing and profit-maximizing output levels.

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