A monopolist has the following short-run total cost,marginal cost,and demand functions:
Total Cost:
Marginal Cost:
Demand:
where P is the price per unit of output,and Q is the quantity of output.
a)What price and quantity combination maximizes the monopolist's total revenue?
b)What is the price range over which a price decrease would lead to an increase in the monopolist's total revenue?
c)What price will the profit-maximizing monopolist charge? What will profits equal?
d)What is the allocatively efficient price-quantity combination?

Question

A monopolist has the following short-run total cost,marginal cost,and demand functions:
Total Cost:

Marginal Cost:

Demand:

where P is the price per unit of output,and Q is the quantity of output.
a)What price and quantity combination maximizes the monopolist's total revenue?
b)What is the price range over which a price decrease would lead to an increase in the monopolist's total revenue?
c)What price will the profit-maximizing monopolist charge? What will profits equal?
d)What is the allocatively efficient price-quantity combination?

Quizplus · Accepted Answer

The Answer of A monopolist has the following short-run total cost,marginal cost,and demand functions: Total Cost: Marginal Cost: Demand: where P is the price per unit of output,and Q is the quantity of output. a)What price and quantity combination maximizes the monopolist's total revenue? b)What is the price range over which a price decrease would lead to an increase in the monopolist's total revenue? c)What price will the profit-maximizing monopolist charge? What will profits equal? d)What is the allocatively efficient price-quantity combination?

A Monopolist Has the Following Short-Run Total Cost,marginal Cost,and Demand