A company faces an inverse demand curve of p = 17 − 2Q and its cost...

Question

Question

A company faces an inverse demand curve of p = 17 − 2Q and its cost function is C = 36 + 2Q + 0.5Q².

1) What Q^* maximizes the monopoly’s profit (or minimizes its loss)?

2) At Q^* , what is the price and profit? Under what condition should the company shut down?

Answer 1

Answer #1

Answer 2

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