Problem
A monopolist firm with the following cubic cost function
TC=3Q3-40Q2+250Q+900
faces the following market demand function for its product
P=2000-10Q
The management of the firm decides to follow a three-stage market strategy
1. find the level of output that minimizes its average total cost.
2. find the level of output that maximizes its total revenue
3. choose the average of the two levels for actual production
(a) What is the level of output in this strategy compared to the profit maximizing output?
(b) What is the price level in this case compared to the profit maximizing case?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.