A firm is a monopolist in their market. Their cost function is given by C(q) = q². The market demand curve that the firm faces is P(q) = 24 – 5q. What are the monopoly profits IIm of the firm? - (a) Im (b) Im (c) IIm = 24 || = || - 44 9 32 (d) IIm = 32 (e) Im = 44

A firm is a monopolist in their market. Their cost function is given by C(q) = q². The market demand curve that the firm faces is P(q) = 24 – 5q. What are the monopoly profits IIm of the firm? - (a) Im (b) Im (c) IIm = 24 || = || - 44 9 32 (d) IIm = 32 (e) Im = 44

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A firm is a monopolist in their market. Their cost function is given by C(q) = q². The
market demand curve that the firm faces is P(q) = 24 – 5q. What are the monopoly
profits IIm of the firm?
(a) Im
(b) Im
(c) Im
(d) Πm
(e) Im
-
||
=
||
44
9
322
5
24
32
= 44

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Please refer to the figure above. When MC is constant, the ATC is also constant. How much profit the monopolist will make?
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