Examlex

Solved

Suppose That a Monopolist's Inverse Demand Curve Can Be Expressed

question 5

Essay

Suppose that a monopolist's inverse demand curve can be expressed as:
P = 20,000 - Q2
The monopolist's total cost curve is:
TC = 8,000Q.
a. Use calculus to determine the monopolist's marginal revenue curve.
b. Use calculus to determine the monopolist's marginal cost curve.
c. What is the monopolist's profit-maximizing level of output?
d. What price should the monopolist charge to maximize its profit?


Definitions:

Routine Requests

Standard inquiries or appeals that are made regularly within the context of business or professional communication.

Potential Sale

An opportunity that might result in the purchase of goods or services.

Goodwill Message

A communication intended to foster positive relations, often expressing thanks, congratulations, or well-wishes.

Positive Response

A favorable or affirmative reaction to a message, proposal, or situation.

Related Questions