Question - A pharmaceutical firm has a monopoly on a new class of vasodilator. The market demand is given by P=290-0.02*Q, and thus MR=290-0.04*Q. The monopolist's marginal cost is constant and equal to 10. Calculate the profit-maximizing price.
A firm has a monopoly on a new type of gaming console. The market demand is given by P=307.4-0.003*Q and thus marginal revenue is MR=307.4-0.006*Q. The monopolist's marginal cost is MC=4.3+0.001*Q. Calculate the profit-maximizing production quantity.