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?
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 ...
Monopolist's demand function is assessed.