Problem: The Industry demand function for bulk plastics is represented by the following equation: P=800-20Q
Where Q represents millions of pounds of plastic. The total cost function for the industry, exclusive of a required return on invested capital, is:
TC = 300 + 500Q + 10Q^2
where Q represens millions of pounds of plastic
a. If this industry acts like a monopolist in the determination of price and output, compute the profits-maximizing level of price and output
b. What are the total profits at this price and output level?