What is the monopolists profit-maximizing combination of


A monopolist has the following cubic cost function:

TC = 0.8Q3:- 32Q2:+ 1000Q + 32000

If the market demand function for the firm's product is P = 3400 - 14Q

(a) What is the monopolist's profit-maximizing combination of price and quantity?

(b) What is the firm's profit?

(c) Derive the firm's trace function.

(d) What is the equation of the dislocated demand curve associated with normal profits?

(e) What is the equation of the dislocated demand curve associated with a price of $3,200?

Solution Preview :

Prepared by a verified Expert
Microeconomics: What is the monopolists profit-maximizing combination of
Reference No:- TGS01162460

Now Priced at $30 (50% Discount)

Recommended (98%)

Rated (4.3/5)