You are the manager of a monopoly, and your demand and cost functions are given by
P=200-2Q and C(Q)=2,000+3Q , respectively.
a. What price-quantity combination maximizes your firm's profits?
b. Calculate the maximum profits
c. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price-quantity combination?
d. What price-quantity combination maximizes revenue?
e. Calculate the maximum revenues.
f. Is demand elastic, inelastic, or unit elastic at the revenue-maximizing price-quantity combination?
You are the manager of a firm that produces a product according to the cost function
C(qi ) = 100 +50qi - 4q i + qi . Determine the short-run supply function if:
a. You operate a perfectly competitive business.
b. You operate a monopoly.
c. You operate a monopolistically competitive business.
This job emphasizes maximum revenues.