You are the manager of a monopoly, and your demand and cost functions are given by

You are the manager of a monopoly, and your demand and cost functions are given by P = 300 – 3Q and C(Q) = 1,500 + 2Q2, respectively. a. What price–quantity combination maximizes your firm’s profits? Price: $ Quantity: units b. Calculate the maximum profits. $

d. What price–quantity combination maximizes revenue? Price: $ Quantity: units e. Calculate the maximum revenues. $

A firm sells its product in a perfectly competitive market where other firms charge a price of $90 per unit. The firm’s total costs are C(Q) = 40 + 10Q + 2Q2. a. How much output should the firm produce in the short run? units

b. What price should the firm charge in the short run? $ c. What are the firm’s short-run profits? $

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