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
You are the manager of a
a. What
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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