Suppose that a well-known scientific fiction writer finishes a new book. The writer’s publisher finds the demand curve for this new book is given by Q = 4200 − 200P, where P is its price. It will cost $2000 to set the book in type. This setup cost is necessary before any copies can be printed. In addition to the setup cost, there is a marginal cost of $8 per book for every book printed. Assume that the publisher wants to maximize the profit from this new book, and considers them-selves as a monopoly. (a) Write down the total revenue (T R(Q)), as a function of the quantity (Q). (b) Write down the total cost (T C(Q)), as a function of the quantity (Q). (c) Find the profit-maximizing quantity (Q∗). (d) Find the profit-maximizing price (P ∗). (e) What is the profit?
Suppose that a well-known scientific fiction writer finishes a new book. The writer’s publisher finds the demand curve for this new book is given by Q = 4200 − 200P, where P is its price. It will cost $2000 to set the book in type. This setup cost is necessary before any copies can be printed. In addition to the setup cost, there is a marginal cost of $8 per book for every book printed. Assume that the publisher wants to maximize the profit from this new book, and considers them-selves as a monopoly. (a) Write down the total revenue (T R(Q)), as a function of the quantity (Q). (b) Write down the total cost (T C(Q)), as a function of the quantity (Q). (c) Find the profit-maximizing quantity (Q∗). (d) Find the profit-maximizing price (P ∗). (e) What is the profit?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose that a well-known scientific fiction writer finishes a new book. The writer’s publisher
finds the demand curve for this new book is given by Q = 4200 − 200P, where P is its price. It will cost $2000 to set the book in type. This setup cost is necessary before any copies can be printed. In addition to the setup cost, there is a marginal cost of $8 per book for every book printed. Assume that the publisher wants to maximize the profit from this new book, and considers them-selves as amonopoly .
(a) Write down the total revenue (T R(Q)), as a function of the quantity (Q).
(b) Write down the total cost (T C(Q)), as a function of the quantity (Q).
(c) Find the profit-maximizing quantity (Q∗).
(d) Find the profit-maximizing price (P ∗).
(e) What is the profit?
finds the demand curve for this new book is given by Q = 4200 − 200P, where P is its price. It will cost $2000 to set the book in type. This setup cost is necessary before any copies can be printed. In addition to the setup cost, there is a marginal cost of $8 per book for every book printed. Assume that the publisher wants to maximize the profit from this new book, and considers them-selves as a
(a) Write down the total revenue (T R(Q)), as a function of the quantity (Q).
(b) Write down the total cost (T C(Q)), as a function of the quantity (Q).
(c) Find the profit-maximizing quantity (Q∗).
(d) Find the profit-maximizing price (P ∗).
(e) What is the profit?
Please just help with c,d,e
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