You are a monopolist with the following demand and cost conditions:
Q = 50 - .5P and
C(Q) = 50 + Q2.
a. Determine the profit-maximizing output and price.
b. Show your total revenue, total cost and profits.
the firm maximize profit at MR=MC
the inverse demand curve is
MR=100-4Q ...... An MR curve is double sloped than the inverse demand curve
MC is the change in total cost and found by differentiation
Total revenue =P*Q
total cost =50+Q^2
the profit is $783.33
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