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You are the manager of a monopoly, and your demand and cost functions are given by P 300 3Q and C(Q) 1,500 2Q 2 , respectively.
a. What price-quantity combination maximizes your firm's profits?
b. Calculate the maximum profits.
c. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price-quantity combination?
d. What price-quantity combination maximizes revenue?
e. Calculate the maximum revenues.
f. Is demand elastic, inelastic, or unit elastic at the revenue-maximizing price-quantity combination?
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If you do not have any applicable personal experience as described above, you may research the described technology implementations in academic journals. Please answer as if you DO NOT have any applicable experience.
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