A monopolist’s Demand and Total Cost Functions are:
P= 1624 -4Q
TC= 22,000 + 24Q – 4Q(squared) + 1/3 Q(to the third power)
Where Q is output produced and sold
a At what level of output and sales (Q) and price (P) will
Total Profits be maximized?
b At what level of output and sales (Q) and price (P) will
Total Revenue be maximized?
c At what price (P) should the monopolist shut down?
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