Find the profit-maximizing output

Reference no: EM133279169

Question - Assume a monopolist sells a product with a total cost function equal to TC = 400 + Q2. The market demand curve for the monopolist's product is P = 500 - Q.

Required -

1. Find the profit-maximizing output and price for this monopolist.

2. Is the monopoly profitable? By how much?

3. Calculate the price elasticity of demand at the monopolist's profit-maximizing price.

Reference no: EM133279169

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