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    3. Price Levels
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    What is his profit maximizing level of output and price?

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    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?

    © BrainMass Inc. brainmass.com October 10, 2019, 2:26 am ad1c9bdddf
    https://brainmass.com/economics/price-levels/profit-maximizing-output-price-monopolist-377325

    Solution Preview

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

    Solution Summary

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

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