• The profit-maximizing price for this monopolist is $66.66 • The profit-maximizing quantity is 16.67 units, • The maximum profits are 1065.77. 3. Suppose: 3a. the inverse demand function for a monopolist's product is given by P = 100-20 C(Q) = 10+20. and the cost function is Determine the profit-maximizing price, quantity and maximum profits. (Lesson 6, 9) 3b. Liuliu.com used to be the only telecommunication company in Malaysia. This makes it a monopoly firm. By theory, LiuliuCom will charge higher price (per subscription) and sell at a smaller output (subscription), to gain abnormal profits. Suppose LiuliuCom demand curve and cost curve are estimated at: P = 225-2Q TC = 1,100 + 3Q2 Analyse how LiuliuCom achieves its maximum profit. The answer should include profit, equilibrium price (per subscription), output (subscription), MC and MR.
• The profit-maximizing price for this monopolist is $66.66 • The profit-maximizing quantity is 16.67 units, • The maximum profits are 1065.77. 3. Suppose: 3a. the inverse demand function for a monopolist's product is given by P = 100-20 C(Q) = 10+20. and the cost function is Determine the profit-maximizing price, quantity and maximum profits. (Lesson 6, 9) 3b. Liuliu.com used to be the only telecommunication company in Malaysia. This makes it a monopoly firm. By theory, LiuliuCom will charge higher price (per subscription) and sell at a smaller output (subscription), to gain abnormal profits. Suppose LiuliuCom demand curve and cost curve are estimated at: P = 225-2Q TC = 1,100 + 3Q2 Analyse how LiuliuCom achieves its maximum profit. The answer should include profit, equilibrium price (per subscription), output (subscription), MC and MR.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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