Please provide answer with method and explanantion

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter14: Indirect Price Discrimination
Section: Chapter Questions
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Please provide answer with method and explanantion

9.
Using the industry demand schedule below:
Price (P)
Quantity (Q)
3.2
3
2.8
2.6
2.4
2.2
2
1.8
1.6
1.4
3
4
5
6
7
8
9
10
11
12
If a monopolist faces the above demand schedule and has costs estimated by:
TC = 5 +0.7Q, what is her optimal P & Q? What profit does she earn at this production quantity?
Transcribed Image Text:9. Using the industry demand schedule below: Price (P) Quantity (Q) 3.2 3 2.8 2.6 2.4 2.2 2 1.8 1.6 1.4 3 4 5 6 7 8 9 10 11 12 If a monopolist faces the above demand schedule and has costs estimated by: TC = 5 +0.7Q, what is her optimal P & Q? What profit does she earn at this production quantity?
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