The demand and total cost functions for a monopoly firm are:   Q(P) = 39.5 – 0.5P   TC(Q) = 60 – Q + 0.5 Q2 What are the profit maximising QM and PM for this firm? What is the firm’s profit πM?

Economics:
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ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter25: Monopoly
Section: Chapter Questions
Problem 10E
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The demand and total cost functions for a monopoly firm are: 
 Q(P) = 39.5 – 0.5P 
 TC(Q) = 60 – Q + 0.5 Q2

What are the profit maximising QM and PM for this firm?

What is the firm’s profit πM?

 

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What would be the socially optimal Q* and P* (round to 1 decimal place if needed

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