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A monopolist sells a product with the total cost function TC = 1200 + 0.5Q2 and the market demand curve is given by P = 300 - Q.

a) Find the profit-maximizing output and price for this monopolist.
b) Calculate the price elasticity of demand at the monopolist's profit-maximizing price.

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Joshua Stredder
Joshua StredderLv10
28 Sep 2019
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A firm with market power faces the demand function q=4000-40p. The firm's total cost function is TC(q)=10q+.001q^2+1000.

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