You are the manager of a monopoly, and your analysts have estimated your demand and cost functions as P = 200 − 2Q and C(Q) = 1,000 + 3Q2, respectively. a. What price–quantity combination maximizes your firm’s profits?   Instructions: Round your response to the nearest penny (two decimal places).   Price: $ Quantity: units   b. Calculate the maximum profits.   Instructions: Round your response to the nearest penny (two d

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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You are the manager of a monopoly, and your analysts have estimated your demand and cost functions as P = 200 − 2Q and C(Q) = 1,000 + 3Q2, respectively.

a. What price–quantity combination maximizes your firm’s profits?

 

Instructions: Round your response to the nearest penny (two decimal places).

 

Price: $

Quantity: units
 

b. Calculate the maximum profits.

 

Instructions: Round your response to the nearest penny (two decimal places).

 

$
 

 

c. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price–quantity combination?

 

 

multiple choice 1

  • Elastic
  • Unit elastic
  • Inelastic


 

 

 

d. What price–quantity combination maximizes revenue?

 

Instructions: Round your response to the nearest penny (two decimal places).

Price: $

Quantity: units
 

e. Calculate the maximum revenues.

 

Instructions: Round your response to the nearest penny (two decimal places).

 

$
 

 

f. Is demand elastic, inelastic, or unit elastic at the revenue-maximizing price–quantity combination?

 

 

multiple choice 2

  • Elastic
  • Unit elastic
  • Inelastic

 

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