bartleby
search
close search
Hit Return to see all results

A monopolist has a demand for its product that is P = A + BQ . It has no fixed costs. Marginal cost is constant at MC = C. Find the profit-maximizing quantity Q to produce and find the profit maximizing price P.P = A + BQP= 315 + -8QMC=CMC= 75

Question

A monopolist has a demand for its product that is P = A + BQ . It has no fixed costs. Marginal cost is constant at MC = C. Find the profit-maximizing quantity Q to produce and find the profit maximizing price P.
P = A + BQ
P= 315 + -8Q
MC=C
MC= 75

check_circleAnswer
Step 1

The given information:

 

Demand function is represented as follows:

 

P = 315 – 8Q                                                                                                   …… (1)

 

Marginal cost (MC) = 75

 

Fixed cost = $0

 

There’s more to the solution above. Sign up now to see!

Sign Up

Not ready to register yet? Check out a sample Q&A here.

Stuck on your homework?

Get expertly curated answers to your homework questions for just $9.99/month

Get As ASAP
Tagged in

Business

Economics

Sorry about that. What wasn’t helpful?