Question

14. The demand function for a monopolist’s product is 𝑝=√500−𝑞. If the monopolist produces at least 100 units, but no more than 200 units, how many units should be produced to maximize total revenue,𝑅=𝑝𝑞?

Answer 1

R = pq = q√(500-q)
dR/dq = (1000-3q)/(2√(500-q))
Looks like dR/dq=0 at q = 1000/3 = 333
But, we are only considering the interval [100,200]. So the maximum R occurs at q=200

Answer 2

Yer good