Question: The demand a monopoly faces is p=100Q+A 0.5 , where Q is thequantity, p is theprice, and A is the level of advertising. Marginal cost

The demand a monopoly faces is

p=100Q+A^0.5,

where Q is thequantity, p is theprice, and A is the level of advertising. Marginal cost is a constant$10 perunit, the cost per unit of advertising is$1, and there are no fixed costs.

Solve for thefirm's profit-maximizingprice, quantity, and level of advertising.

Hint: the profit function must be maximized with respect to two choice variables(Q andA).

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