Question

You are the manager of a monopoly. Your demand and total costs are represented by Demand P = 300 – 3Q Total cost = 1500 + 2Q2.

1a What is the expression for marginal revenue?

1b What is the expression for marginal cost?

1c To maximize profit what output level should it make?

1d To maximize profit at what price should it sell?

1e What is the maximum value of profit?

Answer 1