Write down the monopolist''s optimization problem

Reference no: EM13663080

Suppose Monolith Enterprises has gained exclusive rights to sell ball point pens in St. Catharines. The demand for ball point pens is described by Q = 1500 - 10P, Monolith can produce any number of ball point pens at a constant marginal cost of $2 per pen (i.e., MC(Q) = 2).
1. Write down the monopolist's optimization problem in which the monopolist chooses quantities.
2. What quantity of pins should Monolith produce? 3. What is the price at this level of output?

Reference no: EM13663080

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