A monopolist's cost function is TC(q) = (q/2500)(q - 100)2 + y, so that MC(q) = 3q2/2500 4q/25 + 5. It faces the inverse demand function P(q) = 4 4q/100. Find its output, the associated price, and its profit.
MATHEMATICAL ECONOMICS
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A monopolist's cost function is TC(q) = (q/2500)(q - 100)2 + y, so that MC(q) = 3q2/2500 4q/25 + 5. It faces the inverse demand function P(q) = 4 4q/100. Find its output, the associated price, and its profit.