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A monopolist has the following cubic cost function:
TC = 0.8Q3:- 32Q2:+ 1000Q + 32000
If the market demand function for the firm's product is P = 3400 - 14Q
(a) What is the monopolist's profit-maximizing combination of price and quantity?
(b) What is the firm's profit?
(c) Derive the firm's trace function.
(d) What is the equation of the dislocated demand curve associated with normal profits?
(e) What is the equation of the dislocated demand curve associated with a price of $3,200?
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