MEcon 8 - You are the manager of a monopoly and your demand...

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You are the manager of a monopoly, and your demand and cost functions are given by P _ 300 _ 3 Q and C ( Q ) _ 1,500 _ 2 Q 2 , 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. f. Is demand elastic, inelastic, or unit elastic at the revenue-maximizing price–quantity combination? a. MR = 300 – 6Q and MC = 4Q. Setting MR = MC yields 300 – 6Q = 4Q. Solving yields Q = 30 units.
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