A firm's short run total cost function is TC= 0.75q² +8q+300. The firm is a monopolist and the inverse demand function for its product is p = 201 2q, Find the most profitable level of output, and the profits at that output. Sketch the graphs of the inverse demand function, marginal revenue and marginal cost function with the same axes, showing the equilibrium price, MR and MC, and the output. Sketch the graph of total cost and total revenue with the same axes, showing the quilibrium output and profits. Sketch the graph of the profit function, showing the quilibrium output and profits.

A firm's short run total cost function is TC= 0.75q² +8q+300. The firm is a monopolist and the inverse demand function for its product is p = 201 2q, Find the most profitable level of output, and the profits at that output. Sketch the graphs of the inverse demand function, marginal revenue and marginal cost function with the same axes, showing the equilibrium price, MR and MC, and the output. Sketch the graph of total cost and total revenue with the same axes, showing the quilibrium output and profits. Sketch the graph of the profit function, showing the quilibrium output and profits.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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