A Monopolist Has the Following Short-Run Total Cost,marginal Cost,and Demand $$T C = 32 + 2 Q + \frac { 1 } { 2 } Q ^ { 2 }$$

question 64

Essay

A monopolist has the following short-run total cost,marginal cost,and demand functions:
Total Cost: $$T C = 32 + 2 Q + \frac { 1 } { 2 } Q ^ { 2 }$$
Marginal Cost: $M C = 2 + Q$ Demand: $Q = 52 - 2 P$ where P is the price per unit of output,and Q is the quantity of output.
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A)What price and quantity combination maximizes the monopolist's total revenue?

• A)What price and quantity combination maximizes the monopolist's total revenue?

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Definitions:

Treasury Stock

Stock that was issued and later reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Shareholders' Equity

The residual interest in the assets of a company after deducting all its liabilities, representing what the shareholders own outright.

Loan Agreement

A contract between a borrower and a lender outlining the terms of a loan, including details about repayment, interest rates, and the duration of the loan.

Retained Earnings

Profits that have been reinvested in the company rather than distributed to shareholders as dividends.