You are the manager of a monopoly, and your analysts have estimated your demand and cost functions as P = 300 − 3Q and C(Q) = 1,500 + 2Q2, respectively. a. What price-quantity combination maximizes your firm’s profits? Price: Quantity: b. Calculate the maximum profits. $ c. Is demand elastic, inelastic unit elastic Elastic

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter9: Monopoly
Section: Chapter Questions
Problem 6SQ
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You are the manager of a monopoly, and your analysts have estimated your demand and cost functions as P = 300 − 3Q and C(Q) = 1,500 + 2Q2, respectively.

a. What price-quantity combination maximizes your firm’s profits?

Price:

Quantity:

b. Calculate the maximum profits.

$

c. Is demand elastic,

inelastic

unit elastic

Elastic

d. What price-quantity combination maximizes revenue?

Price:

Quantity:  

e. Calculate the maximum revenues.

$

f. Is demand elastic, inelastic, or unit elastic at the revenue-maximizing price-quantity combination?

multiple choice

Elastic

Unit elastic

Inelastic 

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