Computation of Profit-Maximizing Price Level and Output

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  Total Cost at profit maximizing output TC=1+2*Q=1+2*40=81 e. Profit Profit=TR-TC=240-81=159 Solution calculates optimal output, price, total cost, total revenue and maximum profit.

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  Therefore profit maximizing level of output is 600 units Price at this level is P = 1200 - 600 = 600 This posting offers help with calculating profit maximizing level of output and price of this monopolist.

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  The firm faces a market price of $15. Algebraically calculate the profit maximizing output and the level of optimal profit for the firm.