# Thread: A monopolist (company A) has the following cost & revenue info

1. ## A monopolist (company A) has the following cost & revenue info

Q TC Price
0 100 170
1 140 160
2 184 150
3 230 140
4 280 130
5 335 120
6 394 110
7 475 100
8 575 90

What is the maximum profit A could earn?
What is fixed cost for A when they are maximizing their profits?
What price should A charge if their goal is to maximize profits?
What is the profit maximizing quantity of output for A?

2. Originally Posted by devlin
Q TC Price
0 100 170
1 140 160
2 184 150
3 230 140
4 280 130
5 335 120
6 394 110
7 475 100
8 575 90

What is the maximum profit A could earn?
What is fixed cost for A when they are maximizing their profits?
What price should A charge if their goal is to maximize profits?
What is the profit maximizing quantity of output for A?
Dear devlin,

The revenue (R(Q)) is given by, $\displaystyle R(Q)=pQ$ where p is the unit price and Q is the quantity.

Therefore the profit is, $\displaystyle \pi(Q)=R(Q)-C(Q)$ where C(Q) is the total cost.

Using the above you can find the profits corresponding to each quantity.

Hope you can continue.