Analyising Monopolist's demand and cost functions
Suppose the demand curve faced by a monopolist is:
q=p^-a where a>0
The total cost for the monopolist are C=sq
a) Find the profit maximizing level of output.
b) Specify the first and second order condition for profit maximization.
c) What is the price elasticity of demand faced by this monopolist
d) What happens to the profit maximizing level of output as s increases
e) What happens to the profit maximizing level of output as a increases.
f)Explain results