Question

Suppose the demand model and the cost function facing a firm is expressed as P= 120-5Q...

Suppose the demand model and the cost function facing a firm is expressed as


P= 120-5Q and

TC= 20+ 30Q + 2Q2

1. Calculate

i.                 the profit maximizing equilibrium level of output that the monopolist will produce

ii.               the price that the monopolist would charge

iii.             and the profit of the monopolist

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