Respuesta :
In microeconomics, all businesses adhere to the profit maximization theory, which states that the marginal revenue and marginal cost are equal when profit is maximized, or loss is minimized.
When MR and MC are equal, profit will be maximized.
P = 200-2Q C(Q) = 2000 + 3Q2 are the demand and cost equations.
Since the interest bend is descending slanting, the negligible income condition will be two times as steep as the interest bend. Thus, MR equals 200-4Q.
The equation for marginal costs is equal to
MC = ΔC / ΔQ = 6Q
As a result, when we solve for Q and set MR=MC, we obtain the profit-maximizing quantity as 200-4Q=6Q.
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Full Question = You are the manager of a monopoly, and your demand and cost functions are given by P = 200-2Q and C(Q) = 2000 + 3Q² respectively.
a. What price-quantity combination maximizes your firm's profits?
b. Calculate the maximum profits.
c. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price-quantity combination?
d. What price-quantity combination maximizes revenue?
e. Calculate the maximum revenues.
