Question
A monopoly firm is faced with the following demand function P = 13 – 0.5Q The Marginal Cost function for the firm is given by 3 + 4Q and the total fixed cost is 4
Determine
1. The the profit maximizing output
2.The level of supernormal profit if any
3. The output level at the break-even point
Determine
1. The the profit maximizing output
2.The level of supernormal profit if any
3. The output level at the break-even point
Answers
Andrietah
the profit maximizing output is achieved where marginal revenue equals marginal cost