A monopolistic firm faces the following der curve. Q = 9,000 -1O P This monopoly's cost function has been estimated as follows: TC = 480,000 + 40 Q a. What price should this monopoly charge maximize its profit? b. What would be its equilibrium profit? c. What price should it charge if it were to maximize its revenue?

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter13: Monopoly And Antitrust
Section: Chapter Questions
Problem 12P
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A monopolistic firm faces the following demand
curve.
Q = 9,000 -10 P
This monopoly's cost function has been
estimated as follows:
TC = 480,000 + 40 Q
a. What price should this monopoly charge to
maximize its profit?
b. What would be its equilibrium profit?
c. What price should it charge if it were to
maximize its revenue?
Transcribed Image Text:A monopolistic firm faces the following demand curve. Q = 9,000 -10 P This monopoly's cost function has been estimated as follows: TC = 480,000 + 40 Q a. What price should this monopoly charge to maximize its profit? b. What would be its equilibrium profit? c. What price should it charge if it were to maximize its revenue?
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