Math

If the demand function of the monopolist is {p=200-0.5x} and its cost function is {C=100+5x+7x^2}. Value of 'x' , price and the amount of profit for which profit maximizes are:

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  1. Not really familiar with the formulas relating demand function, cost functions and profit, but here is an example of your question.

    http://math.stackexchange.com/questions/758620/maximized-profit-w-a-cost-demand-function

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  2. thanks

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  3. profit = revenue - cost
    revenue = price * demand

    P(x) = x(200-0.5x) - (100+5x+7x^2)
    = -7.5x^2 + 195x - 100

    Now just find the vertex of that parabola.

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