What price–quantity combination maximizes your firms profit

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Reference no: EM131166314

You are the manager of a monopoly, and your demand and cost functions are given by P = 200 – 2Q and C(Q) = 2,000 + 3Q², respectively.

a. What price–quantity combination maximizes your firm’s profits? (P= $160; Q= 20)

b. Calculate the maximum profits. (3,200 - 3,200 = 0)

c. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price–quantity combination? (i need a step by step solution for this one)

d. Calculate the maximum revenues. (100 x 50 = 5,000)

e. Is demand elastic, inelastic, or unit elastic at the revenue-maximizing price–quantity combination? (i need a step by step solution for this one too)

Reference no: EM131166314

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