If D(p) = 100/p and c(y) = y2, what is the optimal level of output of
the monopolist?
The optimal level of output of the monopolist is the level of output that maximizes the monopolist's profit. To find this, we need to solve the following equation:
Max Profit = D(p) * Q - c(Q)
Where D(p) is the demand function, Q is the level of output, and c(Q) is the cost function.
We can solve this equation by taking the derivative of the profit equation with respect to Q and setting it equal to zero. This gives us the following equation:
0 = D'(p) - 2Q
Solving for Q, we get:
Q = D'(p) / 2
Substituting in the given demand and cost functions, we get:
Q = 100 / (2p)
Therefore, the optimal level of output of the monopolist is 100 / (2p).