A monopolist faces the following demand and cost curves:
Qd = 200 - 10P
TC = 10 + 5Q
How many units will the monopolist produce if it's goal is to maximize profit?
What is the monopolist's total profit, given the units produced in the answer above?
Revenue = Price * Quantity = P * (200 - 10P) = 200P - 10P^2
Cost = 10 + 5Q = 10 + 5(200 - 10P) = ...
Neat, Step-by-Step solution is provided.