A Monopolist's Demand and Total Cost functions are:

P= 1624 -4Q

TC= 22,000 + 24Q -4Q(squared) + 1/3Q (to the third power)

Where Q is output produced and sold

a. At what level of output and sales (Q) and price (P) will Total Profits be maximized?

b. At What level of output and sales (Q) and price (P) will Total Revenue be maximized?

c. At what price (P) should the monopolist shut down?

Solution Summary

The excel document solution contains all the functions in mathematical form, values for all the functions, calculations for the level of output at which profit is maximum, total revenue will be maximum and graph for parts a and c with all the related concepts in action.

Define Q to be the level of output produced and sold, and assume that the firm's cost function is given by the relationship:
TC = 20 + 5Q + Q^2 (Q is squared)
Furthermore, assume that the demand for the output of the firm is a function of price P given by the relationship:
Q = 25 - P
1. Define total profit as the

Please refer attached file for diagram.
The follwing diagram shows the cost structure of a mononpoly firm as well as market demand. Identify on the graph and calculate the following:
a. Profit-maximizing output level
b. Profit-maximizing price
c. TotalRevenue
d. Total Cost
e. Total profit or loss.
State the correct

I would really apriciate it if you could explain the answer in a detailed way with graphs.Thank you.
Firms in pure competition take the market price as given and produce the level of output which will maximize their profits.This quantity can be determined graphically by using either the totalrevenue, total cost approach or

Willy's Widgets, a monopoly, faces the following demand schedule (sales in widgets per month):
Price Quantity demanded
$20 40
$30 35
$40 30
$50 25
$60 20
$70 15
$80 10
$90 5
$100 0
Calculate marginal revenue over each interval in the schedule, for example, between Q = 4

See attached file
1. Refer to the above data. At the profit-maximizing output the firm's totalrevenue is:
A. $48.
B. $32.
C. $80.
D. $64.
Marginal Marginal
Output revenue cost
0

A monopolist has demandand cost curves given by:
Q = 1000 - 2P
TC = 5,000 + 10Q
Find average cost (AC), average variable cost (AVC), marginal cost (MC), marginal revenue (MR).
a. What is the quantity that maximizes profit? What is the revenueand profit at that point?
b. What is the quantity that maximizes revenue? Wh

You are the manager of a firm that sells its product in a competitive market at a price of $40. Your firm's total cost function is C=4Q^2 and marginal cost is MC=8Q. What is your profit-maximizing quantity (Q) and price (P), and what is your firm's economic profit? If you operate a typical firm in this market, what will happen i

Please help with the following problems. Provide step by step calculations for each.
The yearly cost of producing computers is: C(Q) = 20,000 + 2Q2 , where 'Q' represents the number of computer systems produced.
Marginal Cost (MC) = 4Q
Yearly demand for computers is: Q = 1,000 - P, where 'P' represents the selling price

P = $130 - $0.000125Q
MR - $130 - 0.00025
Fixed development cost = $600,000
Marginal costs are $63 per unit.
Calculate output, price, totalrevenueandtotal profit at the revenuemaximizing activity level and then at the profit maximizing level (present each with relevant diagrams).