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    Online Economics Managerial class using Michael Baye's 5th edition book.

    You are the manager of a monopoly, and your demand and cost functions are given by
    P = 200 - 2Q and C(Q) = 2,000 + 3Q2, respectively.

    a. What price-quantity combination maximizes your firm's profits?

    b. Calculate the maximum profits.

    c. Is demand elastic, inelastic, or unit elastic at the profit-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 the revenue-maximizing price-quantity combination?

    Please see attached for full question.

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    Solution Summary

    Monopoly/Oligopoly problems are solved.