Explore BrainMass

Explore BrainMass

    Monopolist's demand function

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    30) A monopolist's Demand function is P = 1624 - 4Q, and its Total Cost function is
    TC = 22,000 + 24Q -4Q2 + ⅓Q3, where Q is output produced and sold.
    At what price (P) should the monopolist shut down?

    © BrainMass Inc. brainmass.com October 9, 2019, 8:08 pm ad1c9bdddf

    Solution Preview

    There are two type of decisions depending upon the time span. In short run, since monopolist cannot avoid the fixed costs, Monopolist should shut down only when the P < AVC
    Solve for P=VC
    VC is the variable part of ...

    Solution Summary

    Monopolist's demand function is assessed.