Given the demand of computer P=100-5Q and cost function C= 100+2Q2, MC=0 tell us what in terms of profit maximization under monopoly
To find the profit maximization under monopoly, we need to find the quantity and price at which the monopolist maximizes their profit.
First, we find the monopolist's marginal cost (MC) when it is equal to 0:
MC = 0
100 + 2Q^2 = 0
2Q^2 = -100
Q^2 = -50
This equation has no real solutions because we cannot have a negative quantity. Therefore, the monopolist does not have a quantity for which MC is equal to 0.
However, we can still determine the monopolist's profit maximization point by finding the point at which marginal cost (MC) is equal to marginal revenue (MR). The monopolist maximizes profit when MR = MC.
To find the monopolist's marginal revenue (MR), we need to take the derivative of the demand function P = 100 - 5Q with respect to Q:
MR = dP/dQ = -5
Setting MR equal to MC, we have:
-5 = 0
This equation has no valid solution. Therefore, the monopolist does not have a point at which MR = MC.
In conclusion, the information given does not allow us to determine the profit maximizing quantity and price for the monopolist.