How much profit does the uniform pricing monopolist make

Reference no: EM13224759

Suppose a uniform pricing monopolist's price equation is P(Q) = 50 - 0.5Q; the uniform pricing monopolist's marginal revenue is MR(Q) = 50 - Q; the uniform pricing monopolist's total cost is C(Q) = 0.5Q2 + 10Q + 75; and the uniform pricing monopolist's marginal cost is MC(Q) = Q + 10.
a. Solve for the profit-maximizing (or loss minimizing) quantity (Q*).
b. Solve for the profit-maximizing (or loss minimizing) price (P*).
c. The uniform pricing monopolist should produce Q*. Explain why this is correct using
one of the four key questions and solutions.
d. The uniform pricing monopolist makes a profit. Explain why this is correct using one of
the four key questions and solutions.
e. How much profit does the uniform pricing monopolist make?

Reference no: EM13224759

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