What is its profit-maximizing sales quantity and price

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Reference no: EM13736874

Kalamazoo Competition-Free Concrete (KCC) is a local monopolist of ready-mix concrete.

Its annual inverse demand function is P= 65 - 2Q

Where P is the price, in dollars, of a cubic yard of concrete and Q is the number of cubic yards sold per year.

Suppose that Kalamazoo's marginal cost is: MC = 0 + 1Q

a. What is its profit-maximizing sales quantity and price?

b. What is the value of MC at profit maximizing sales quantity

c. What is the elasticity of demand for this product?

Reference no: EM13736874

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