Involve a profit-maximizing monopolist. Using time-series data, the demand function for the monopolist has been estimated as
$Q _ { d } = 142,000 - 500 P + 6 M - 400 P _ { R }$
where
$Q _ { d }$ is the amount sold, P is price, M is income, and
$P _ { R }$ is the price of a related good. The estimated values for M and
$P _ { R }$ in 2012 are $25,000 and $200, respectively. The short-run marginal cost curve for this firm has been estimated as:
$M C = 200 - 0.024 Q + 0.000006 Q ^ { 2 }$
Total fixed cost is forecast to be $500,000 in 2015.
-The firm's forecasted profit (loss) in 2015 is a

Question

Involve a profit-maximizing monopolist. Using time-series data, the demand function for the monopolist has been estimated as
 $Q _ { d } = 142,000 - 500 P + 6 M - 400 P _ { R }$ 
where
 $Q _ { d }$ is the amount sold, P is price, M is income, and
 $P _ { R }$ is the price of a related good. The estimated values for M and
 $P _ { R }$ in 2012 are $25,000 and $200, respectively. The short-run marginal cost curve for this firm has been estimated as:
 $M C = 200 - 0.024 Q + 0.000006 Q ^ { 2 }$ 
Total fixed cost is forecast to be $500,000 in 2015.
-The firm's forecasted profit (loss) in 2015 is a

Quizplus · Accepted Answer

To find the profit, calculate the monopolist's optimal price and quantity by setting marginal revenue equal to marginal cost. Then, compute total revenue and total cost to find profit. Given the demand and cost functions, the calculations show a profit of $908,000.

Involve a Profit-Maximizing Monopolist Qd=142,000−500P+6M−400PRQ _ { d } = 142,000 - 500 P + 6 M - 400 P _ { R }Qd​=142,000−500P+6M−400PR​

Involve a Profit-Maximizing Monopolist $Q _ { d } = 142,000 - 500 P + 6 M - 400 P _ { R }$