Suppose that a monopolist has the following demand function and cost function Q 1000' P(Q) = 10- C(Q) = = 5000 + 2Q Find the output level that maximizes profits, verify whether your answer is indeed a maximum, and find the maximum profit.

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter25: Monopoly
Section: Chapter Questions
Problem 14E
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Suppose that a monopolist has the following demand function and cost function
Q
1000'
C(Q) = 5000+2Q
Find the output level that maximizes profits, verify whether your answer is indeed a maximum, and
find the maximum profit.
P(Q) = 10 –
Transcribed Image Text:Suppose that a monopolist has the following demand function and cost function Q 1000' C(Q) = 5000+2Q Find the output level that maximizes profits, verify whether your answer is indeed a maximum, and find the maximum profit. P(Q) = 10 –
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