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You are the manager of a monopolistically competitive firm, and your demand and cost functions are...

You are the manager of a monopolistically competitive firm, and your demand and cost functions are given by Q = 36 – 4P and C(Q) = 4 + 4Q + Q2.

Determine the profit-maximizing price and level of production.

Instruction: Price should be rounded to the nearest penny (two decimal places).

Price: $

Quantity:

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Answer #1

Ans. The profit-maximizing price is $8.50 and the level of production is 2 units.

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