A firm's short run total cost function is TC= 0.75q² +8q+300. The firm is a monopolist and the inverse demand function for its product is p = 201 2q, Find the most profitable level of output, and the profits at that output. Sketch the graphs of the inverse demand function, marginal revenue and marginal cost function with the same axes, showing the equilibrium price, MR and MC, and the output. Sketch the graph of total cost and total revenue with the same axes, showing the quilibrium output and profits. Sketch the graph of the profit function, showing the quilibrium output and profits.

A firm's short run total cost function is TC= 0.75q² +8q+300. The firm is a monopolist and the inverse demand function for its product is p = 201 2q, Find the most profitable level of output, and the profits at that output. Sketch the graphs of the inverse demand function, marginal revenue and marginal cost function with the same axes, showing the equilibrium price, MR and MC, and the output. Sketch the graph of total cost and total revenue with the same axes, showing the quilibrium output and profits. Sketch the graph of the profit function, showing the quilibrium output and profits.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter12: Price And Output Determination: Oligopoly

Section: Chapter Questions

Problem 6E

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