A monopolist has total cost TC = Q2 + 10Q + 100 and marginalcost MC...

A monopolist has total cost TC = Q2 + 10Q + 100 and marginal cost MC = 2Q + 10. It faces demand Q = 130 - P (so its marginal revenue is MR = 130 - 2Q). Its profit-maximizing price is

$50

$75

$100

Solutions

Expert Solution

profit-maximizing price is=MR=MC

2Q+10=130-2Q

4Q=120

Q=120/4=30

so put Q=30 in Q=130-P

30=130-P

P=130-30=100 is answer

Rahul Sunny answered 1 year ago

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