A monopolist has total cost TC = Q² + 10Q + 100 and marginal cost MC = 2Q + 10. It faces demand Q = 130- P (so its marginal revenue is MR = 130 - 2Q). Its profit-maximizing output A)30 B)25 C)20 D)10

Question

Quizplus · Accepted Answer

The profit-maximizing output is where marginal cost equals marginal revenue. So, we solve 2Q + 10 = 130 - 2Q for Q. This gives Q = 30.

A Monopolist Has Total Cost TC = Q2 + 10Q

A Monopolist Has Total Cost TC = Q² + 10Q