Assume a profit maximizing monopolist faces the following demand, marginal revenue and cost functions:

Assume a profit maximizing monopolist faces the following demand, marginal revenue and cost functions: Demand: P = 400 - 50Q Total Cost: TC = 100Q Marginal cost MC = 100 Marginal Revenue MR = 400 – 100Q

a) Find the profit maximizing output level for the monopolist.

b) At this level of output what price will the monopolist charge?

c) What is the total profit for the monopolist?

d) If the monopolist were a revenue maximizer instead of a profit maximizer, what would be the output level to maximize revenue?

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Expert Solution

Rahul Sunny answered 1 year ago

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