The inverse demand curve a monopoly faces is p=120−Q. The firm's cost curve is C(Q)=20+5Q. Part 2 What is the profit-maximizing solution? The profit-maximizing quantity is
The inverse demand curve a monopoly faces is p=120−Q. The firm's cost curve is C(Q)=20+5Q. Part 2 What is the profit-maximizing solution? The profit-maximizing quantity is
Chapter23: Profit Maximization
Section: Chapter Questions
Problem 13E
Related questions
Question
4
The inverse demand curve a
p=120−Q.
The firm's cost curve is
C(Q)=20+5Q.
Part 2
What is the profit-maximizing solution?
The profit-maximizing quantity is
57.557.5.
(Round your answer to two decimal places.)
The profit-maximizing price is
$62.562.5.
(round your answer to two decimal places.)
Part 3
What is the firm's economic profit?
The firm earns a profit of
$enter your response here.
(round your answer to two decimal places.)
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