In a monopoly with a 50-50 chance of a demand curve of P=20-Q or P=40-Q and MC=Q, what is the profit maximizing price. Please show the steps to find either $5, 10, 15, or 20.© BrainMass Inc. brainmass.com June 18, 2018, 3:56 am ad1c9bdddf
For P = 20 - Q, MR = 20 - 2Q
Profit is maximized at MR = MC, which is 20 - 2Q = Q, or 3Q = 20, ...
Show steps to find the profit maximizing price.