Verify that the iepr holds

Reference no: EM131493986

Question: Assume that a monopolist sells a product with a total cost function TC = 1,200 + 0.5Q2 and a corresponding marginal cost function MC = Q. The market demand curve is given by the equation P = 300 - Q.

a). Find the profit-maximizing output and price for this monopolist. Is the monopolist profitable?

b). Calculate the price elasticity of demand at the monopolist's profit-maximizing price. Also calculate the marginal cost at the monopolist's profit-maximizing output. Verify that the IEPR holds.

Reference no: EM131493986

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