Calculate the level of total profit

Reference no: EM1370211

Assume a firm has just introduced a new line of ceramic insulators for which it has received patent protection, effectively granting the company monopoly status in the industry. The company's revenue and cost relations are given as:

TR = $300Q - $0.001Q2

TC = $9,000,000 + $20Q + $0.0004Q2

where TR is total revenue, Q is output, and TC is total cost.

a) As a monopolist, calculate this firm's optimal output (Q) and price per unit (P).
b) Calculate the level of total profit at this output level and also the value of per unit profit at this output level.

Reference no: EM1370211

Questions Cloud

Computing profit maximizing output level : Assume that the total cost function for a single firm in a purely competitive industry is given by following equation:

Design influences paper : Provide a brief description of your selected organization and provide rationale as to why design is, or could be, beneficial to these areas.

Explain dispatcher and data access object design : Prepare a two page paper comparing and contrasting five of design. Dispatcher - controls client access and re-directs or dispatches client requests to proper party which can be located on same or different tier.

Explaion what is the most surprising point that guy kawasaki : Explaion What is the most surprising point that Guy Kawasaki makes and Be sure to discuss why this is more important than the others.

Calculate the level of total profit : Assume a firm has just introduced a new line of ceramic insulators for which it has received patent protection, effectively granting the company monopoly status in the industry.

Find current population and growth rate : Discuss the current population and people of Taiwan and Egypt and current population and growth rate

Firm demand for labour curve : Assume a firm's production function is given by Q = 12L - L^2 for L = 0 to 6, where L is labour input per day and Q is output per day. Derive and draw the firm's demand for labour curve if output sells for $10 in competitive market.

Determine the market rate of return : Martin's Yachts has paid yearlydividends of $1.40, $1.75, and $2.00 a share over the last three years, respectively.

Explain robert nardelli was heavily criticized : Explain Robert Nardelli was heavily criticized for his leadership style and methods he used during his tenure as CEO of Home Depot.

User Account

All Pages