1) A newspaper has a monopoly on the local news market in a town. The market demand is given by P=1.70-Q/10,000, making the marginal revenue MR=1.70-Q/5,000. The marginal cost is constant at equal to 0.80. The fixed cost is 2,000. Variable cost is 0.80Q. Find the monopolist's profit maximizing price.
2) A newspaper has a monopoly on the local news market in a town. The market demand is given by P=1.70-Q/10,000, making the marginal revenue MR=1.70-Q/5,000. The marginal cost is constant at equal to 0.80. The fixed cost is 2,000. Variable cost is 0.80Q. Find the monopolist's maximum profit.