Purchase Solution

What is his profit maximizing level of output and price?

Not what you're looking for?

Ask Custom Question

Suppose that the market demand for Mountain Spring Water a monopolist, is given as follows:

P=1200-Q. Mountain spring water can be produced at no cost. What is the profit maximizing level of output and price of this monopolist?

Purchase this Solution

Solution Summary

This posting offers help with calculating profit maximizing level of output and price of this monopolist.

Solution Preview

Demand function: P = 1200 - Q
Revenue function: R = PQ = 1200 Q - Q2
Since cost is zero, the profit ...

Purchase this Solution

Free BrainMass Quizzes
Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.