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

question 44

Essay

Suppose that a monopolist's inverse demand curve can be expressed as:
P = 10,000 + 100Q - 10Q².
The monopolist's total cost curve is:
TC = 5,000Q.
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?

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Definitions:

Negative Reinforcement

A behavioral principle where the removal of an aversive stimulus strengthens a behavior.

Noxious Stimulus

An unpleasant or harmful stimulus that is likely to cause discomfort or damage.

Maladaptive Response

An ineffective or harmful response to environmental stressors, typically preventing healthy adjustment.

Problem Behaviors

Actions or patterns of behavior that are socially unacceptable or harmful to oneself or others.