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Calculating optmal output and other related parameters

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Assume a monopolist with the following:

Qd =100-10p

TC = 1 + 2Q

Find the following:
a) Price at profit maximizing output
b) Profit maximizing output
c) Total Revenue at profit maximizing output
d) Total Cost at profit maximizing output
e)Profit

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Solution Summary

Solution calculates optimal output, price, total cost, total revenue and maximum profit.

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a)Price at profit maximizing output

Qd = 100 - 10p
P=(100-Qd)/10=10-0.1Qd

Total Revenue=P*Qd=(10-0.1Qd)*Qd=10Qd-0.1Qd^2
Marginal ...

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  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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