Caluclating monopoly price and profit maximizing output

Reference no: EM1370084

You are the manager of a firm that sells its product in a competitive market at a price of 50. Your firms cost structure is
c=40 + 5Q2.
The profit maximizing output for your firm is

4/5
10
5
45

Suppose a monopolistic knows the own-price elasticity of demand for its product is -3 and its marginal cost of production is constant MC(Q) = 10. To maximize its profits, the monopoly price is

1.50 per unit
6.67 per unit
10.00 per unit
15.00 per unit

Reference no: EM1370084

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