Suppose the Monolith Enterprises has gained exclusive rights to sell the ball point pens in St. Catharine's. Monolith can produce any number of ball point pens at a constant marginal cost of $2 per pen (i.e., MC (Q) = 2). The demand for ball point pens is described by the Q = 1500 - 10P.
1. How can write the monopolist's optimization problem in which the monopolist chooses quantities.
2. Explain what quantity of pins should Monolith form?
3. Determine the price at this level of output?