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?© BrainMass Inc. brainmass.com October 16, 2018, 6:21 pm ad1c9bdddf
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.
Profit-maximizing output ..
Illustrate and explain how the profit maximizing level of production and is determined in perfect competition. Illustrate and explain what it means for the market to move towards a long-term equilibrium condition.View Full Posting Details