This problem is about a monopoly. Let a monopolist's inverse demandfunction be given byp = 100 – 0.0002qwhich generates a marginal revenue function ofMR = 100 – 0.0004qLet Total Cost be given byTC = 100 + 28q – 0.005q? + 0.0000011q3Which has marginal cost ofMC = 28 – 0.01q + 0.0000031q?This monopolist maximizes profit at q* = 6610.33 (to the nearest penny).%3DFor this problem find the following:) Show that the profit maximizing output level is 6610.33 (to the nearest penny)) Find the price at the profit maximizing output level.) The cost per unit at the profit maximizing output level.) Profit per unit at the profit maximizing output level.) The total profit (or loss) at the profit maximizing output level.

function be given by p = 100 – 0.0002q which generates a marginal revenue function of MR = 100 – 0.0004q Let Total Cost be given by TC = 100 + 28q – 0.005q² + 0.0000011q³ Which has marginal cost of MC = 28 – 0.01q + 0.0000031q? This monopolist maximizes profit at q* = 6610.33 (to the nearest penny). For this problem find the following: Show that the profit maximizing output level is 6610.33 (to the nearest penny) Find the price at the profit maximizing output level. The cost per unit at the profit maximizing output level. Profit per unit at the profit maximizing output level. he total profit (or loss) at the profit maximizing output level.

function be given by p = 100 – 0.0002q which generates a marginal revenue function of MR = 100 – 0.0004q Let Total Cost be given by TC = 100 + 28q – 0.005q² + 0.0000011q³ Which has marginal cost of MC = 28 – 0.01q + 0.0000031q? This monopolist maximizes profit at q* = 6610.33 (to the nearest penny). For this problem find the following: Show that the profit maximizing output level is 6610.33 (to the nearest penny) Find the price at the profit maximizing output level. The cost per unit at the profit maximizing output level. Profit per unit at the profit maximizing output level. he total profit (or loss) at the profit maximizing output level.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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