Problem
Suppose you work at a monopoly firm where market demand is given as Q = 500 - P and your firm has a cost function equal to c(q) = 200 + 0.5q2
1) Using calculus, what is the profit maximizing price and quantity.
2) What is your maximized profit given the price and quantity from part 1?
3) Create an excel table containing columns for price, quantity, revenue, total cost, and total profit. Have an individual row for price in multiples of 25 that starts at 600 and continues downward until it reaches P=300. Format the table with a title and consistent decimal places as well as commas marking the thousands place of the numbers.
4) Create a graph showing TR, TC, and Profit over the range of quantities in your table. Give your table a title, make sure it is formatted to look professional. Also make sure the horizontal axis is expressed in the quantities from the table (not 1,2,3....).