1. A monopolist's marginal cost function is given by: MC = 4g + 20 where q is the quantity of good the monopolist produces. Fixed costs are 20, and the demand equation for the good produced is p+4q = 40, where p and q are price and quantity, respectively. Find expressions for total revenue and for profit, as functions of q. Determine the value of q which maximises the profit.

1. A monopolist's marginal cost function is given by: MC = 4g + 20 where q is the quantity of good the monopolist produces. Fixed costs are 20, and the demand equation for the good produced is p+4q = 40, where p and q are price and quantity, respectively. Find expressions for total revenue and for profit, as functions of q. Determine the value of q which maximises the profit.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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