You Are The Manager Of A Monopoly And Your Demand And Costfunctions Are Given By
You are the manager of a monopoly, and your demand and costfunctions are given by P = 200 – 2Q and C(Q) = 2000 + 3Qsquared,respectively.
a. What price-quantity combination maximizes your firm’sprofits?
b. Calculate the maximum profits.
c. Is demand elastic, inelastic, or unit elastic at theprofit-maximizing price-quantity combination?
d. What price-quantity combination maximizes revenue?
e. Calculate the maximum revenues.
f. Is demand elastic, inelastic, or unit elastic at therevenue-maximizing price-quantity combination?