Posted by **Turner** on Tuesday, October 23, 2012 at 2:37pm.

You are the manager of a monopoly, and your demand and cost functions are given by P = 300 – 2.5Q and C(Q)=1000 + 2.5Q2.

a.At what price and quantity are firm’s profits maximized?

- Managerial Econ -
**Steve**, Tuesday, October 23, 2012 at 2:54pm
revenue = price * quantity

profit = revenue - cost

so, the profit is

Q(300-2.5Q) - (1000 + 2.5Q^2)

= 300Q - 2.5Q^2 - 1000 - 2.5Q^2

= -5Q^2 + 300Q - 1000

= -5(Q^2 - 60Q + 200)

max profit at Q=30, P(30)=225

## Answer this Question

## Related Questions

- Managerial Econ - You are the manager of a firm which produces according to the ...
- econ - 1. Consider a pure monopolist with short-run total cost function given by...
- econ - P=15-Q/1000. Suppose there are two firms in this market. Compute ...
- economics - suppose a competitive market consists of identical firms with a ...
- econ - 2. Suppose that firms in an industry have the following cost function: C...
- Mangerial Economics - Consider a Cournot duopoly with the following inverse ...
- Managerial economics - Suppose Nick produces to goods @ cost C(q1,q2)=1000=.5q1^...
- Managerial economics - Posted by Patrick on Saturday, September 22, 2007 at 5:...
- Micro-Econ - Graph below represents the market demand for a patented ...
- econ 460 - 1. The demand for a new drug is given by P = 4 – 0.5Q. The marginal ...

More Related Questions