Determining costs and maximizing profits for monopoly

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Reference no: EM1370506

A monopolist has demand and cost curves given by:

Q = 1000 - 2P

TC = 5,000 + 10Q

Determine average cost (AC), average variable cost (AVC), marginal cost (MC), marginal revenue (MR).

a. Find out the quantity that maximizes profit? What is the revenue and profit at that point?

b. Find out the quantity that maximizes revenue? What is the revenue and profit at that point?

Reference no: EM1370506

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