Calculating the profit maximizing price and quantity
Not what you're looking for?
Assume a monopolist with the following demand and cost relationships.
Q = 400 - 20P
TC = 10 + 5Q + Q^2 (Where "^" means "to the power of")
Calculate the following:
Profit maximizing price
Profit maximizing quantity
TR, TC, and Profit at profit maximizing Q and P.
Purchase this Solution
Solution Summary
Detailed calculations of a monopolist's profit maximizing price and output given its Demand and Total Cost functions.
Solution Preview
Demand curve:
Q = 400 - 20P
Rearranging:
20P = 400 - Q
P = 20 - 0.05Q
Total Revenue:
TR = PQ
TR = (20 - 0.05Q)Q
TR = 20Q - ...
Purchase this Solution
Free BrainMass Quizzes
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.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.