You are the manager of a monopoly, and your demand and cost functions are given by P = 300 – 3Q and C(Q) = 1,500 + 2Q2, respectively.
a. What price–quantity combination maximizes your firm’s profits?
b. Calculate the maximum profits.
d. What price–quantity combination maximizes revenue?
e. Calculate the maximum revenues.
A firm sells its product in a perfectly competitive market where other firms charge a price of $90 per unit. The firm’s total costs are C(Q) = 40 + 10Q + 2Q2.
a. How much output should the firm produce in the short run?
b. What price should the firm charge in the short run?
c. What are the firm’s short-run profits?