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SG Express has a monopoly on shipping delivery in a local community. The demand for SG express is Q=600-2p. The total cost of providing shipping delivery for the monopoly is C= 15,000+Q^2
a) Find the marginal revenue and marginal cost functions of the monopoly.
b) What is the profit-maximizing output level and price of the monopoly? What is the profit level of the monopoly? Show your workings.
c) Draw a well-labeled diagram to show your answer in b)
d) Compare the difference between the equilibrium of the monopoly in c) and the long run equilibrium of a competitive firm.
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