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
The given information:
Demand function is represented as follows:
P = 315 – 8Q …… (1)
Marginal cost (MC) = 75
Fixed cost = $0
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