A monopolist faces a demand curve given by Qd = 50- 2P and has a cost function given by TC = 2Q² + 5Q + 5 where Qd, P, TC and Q represent, respectively, the quantity demanded, the price of the good, the total costs of production and the firm's output. Which of the following statements are true, false or uncertain? Give your reasons: d) the firm's revenue is maximised when it produces and sells 4 units. e) the firm's profit is maximised when Q = 4.

A monopolist faces a demand curve given by Qd = 50- 2P and has a cost function given by TC = 2Q² + 5Q + 5 where Qd, P, TC and Q represent, respectively, the quantity demanded, the price of the good, the total costs of production and the firm's output. Which of the following statements are true, false or uncertain? Give your reasons: d) the firm's revenue is maximised when it produces and sells 4 units. e) the firm's profit is maximised when Q = 4.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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