A monopolist's demand curve is given by:
p = 100 + A¹/² - Q
where Q is the quantity of output and A is the quantity of advertising.Suppose the cost of advertising and output is given by:
C(Q,A)= 10Q + A
Determine the profit maximizing quantity of output and advertising.

Question

Quizplus · Accepted Answer

The Answer of A monopolist's demand curve is given by:
p = 100 + A¹/² - Q
where Q is the quantity of output and A is the quantity of advertising.Suppose the cost of advertising and output is given by:
C(Q,A)= 10Q + A
Determine the profit maximizing quantity of output and advertising.

A Monopolist's Demand Curve Is Given By