• the optimal output (the number of hours of cleaning) is 45 hours. • the optimal price is $ 45 • the profit is0

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter8: Monopoly
Section: Chapter Questions
Problem 7SQP
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Question
Mighty Cleaners, Inc, is a monopolist in the
specialised cleaning industry. Its cost is C =
220 - 4Q + Q2 and demand is P = 180 -
3Q, where Q is the number of hours of
cleaning they provide and P is the price per
hour of cleaning they charge. Find the
optimal price P and output Q. What would be
its profit?
Please round your final answers to two decimal
places, if necessary. For example, type in 12.5
for quantity, 2.34 for price and 300.78 for
profit.
• the optimal output (the number of hours
of cleaning) is 45
hours.
• the optimal price is $ 45
• the profit is 0
Transcribed Image Text:Mighty Cleaners, Inc, is a monopolist in the specialised cleaning industry. Its cost is C = 220 - 4Q + Q2 and demand is P = 180 - 3Q, where Q is the number of hours of cleaning they provide and P is the price per hour of cleaning they charge. Find the optimal price P and output Q. What would be its profit? Please round your final answers to two decimal places, if necessary. For example, type in 12.5 for quantity, 2.34 for price and 300.78 for profit. • the optimal output (the number of hours of cleaning) is 45 hours. • the optimal price is $ 45 • the profit is 0
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