Help with profit-maximizing quantity and price
Not what you're looking for?
A monopolist has demand and cost curves given by:
Quantity demand = 10000 - 20P
TC = 1000 + 10Q + .05Q^2
a. Find the monopolist's profit-maximizing quantity and price.
b. Find the monopolist's profit.
I tried to do the problem but kept coming up with a negative number for the monopolist's profit. Are my number's correct?
P = 10 - .05Q
TR = 10Q - .05Q^2
Q = 99.5
P = $5.03 (nearest cent) or $5.00 (nearest 10 cents)
What should I use as the wholesale price?
Purchase this Solution
Solution Summary
The expert examines profit-maximizing quantity prices.
Solution Preview
a. Find the monopolist's profit-maximizing quantity and price.
We write the demand into:
P = 500-.05Q
Then TR = P*Q = 500Q - .05Q^2
It should be noticed that the firm is a monopolist and is facing a downward ...
Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
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.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.