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Consider a monopolist firm facing an inverse demand curve given by P(Q) 2700 9Q The firms total cost is given by C() 11,000+9000

(a) Show your work in solving for the firms profit-maximizing quantity and price. What is the maximized value of profit? (b) Plot this firms revenue and total cost functions. Illustrate the profit-maximizing quantity on this graph, as well as the firms maximized profit level (c) Now plot this firms inverse demand, marginal revenue, and marginal cost curves. Il lustrate the profit-maximizing quantity on this graph, as well as the firms maximized variable profit and variable cost (d) Explain, in English-language sentences, the factors that determine a firms profit max imizing quantity. Your discussion should include the terms marginal revenue, marginal cost, price effect and volume effect e) Suppose the firms total cost changes as follows: C() 11,000 1200Q Illuminate (by solving, drawing pictures, and explaining intuition) how the firm should respond and what happens to its maximized profit. (f) Return to the cost assumptions stated in part (a). Suppose the firms inverse demand changes as follows: P(Q) 2700 6Q Illuminate (by solving, drawing pictures, and explaining intuition) how the firm should respond and what happens to its maximized profit. (g) Return to the demand assumptions stated in part (a). Suppose the firms total cost changes as follows: C() 20, 000+900Q lluminate (by solving, drawing pictures, and explaining intuition) how the firm should respond and what happens to its maximized profit.

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1800 18G, 80 p=8900-900 =1800 180p00-11 000-9 ορ oo

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