Given demand curve of the monopolist :Q=30-0.3P,& given the cost function C=2Q2+20Q+10,
a)find the profit maximizing level of output &price
b)determine the max possible profit.
c)check for the 2nd order condition.
Q=30-0.3P and
, first let find the price and Q( OUTPUT)
Q=30-0.3P, SO 30-0.3P=0
30=0.3P AND DIVIDE 30/.3P
AND P=100
AND ADD THE 100 ON PRICE
Q=30-0.3(100)= Q=0
FINALLY ,, LET FIND C? C=2Q
2+20Q+10,AND ADD Q VALUE ON C given function means, C=2(0)2+20(0)+10,=c=10
finally find the profit,, £=TR-C
TR=p*q...
100*0= 0 so, c=10,, 0-10
-10so interval or /-10/= 10
and find the 2nd order condition
means dy=f'(x).dx
d2y=f''(x).dx2
so