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Math Help - A monopolist (company A) has the following cost & revenue info

  1. #1
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    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?
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  2. #2
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    Quote Originally Posted by devlin View Post
    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, R(Q)=pQ where p is the unit price and Q is the quantity.

    Therefore the profit is, \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.
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