Question

a monopoly firm's demand curve is given by p=700-3q the firms current price is 400 suppose...

a monopoly firm's demand curve is given by p=700-3q the firms current price is 400 suppose the price elasticy of demand is -1.5.

(a)calculate the firms marginal revenue at the current price using the expression for marginal revenue that utilizes the price elasticity of demand

(b) the firm sells 100 units of output a week if the marginal cost is zero, is this firm profit maximizing? what should be this firms profit maximizing output and price?

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