A monopoly’s demand function is given by: D;P=160-2Q. It’s costs are given by: AC=MC=40. Calculate the firm’s profit.
Based on a. illustrate this market, including all intercepts, and calculate the deadweight loss caused by the monopolisation of this market.
The profit function for a second monopoly is given by: π=600Q-2Q^3-1000. Calculate the firm’s fixed costs.
Using the profit function in c. calculate the firms profit if it firm produces 17 units.
Using the profit function in c. calculate the quantity of units this firm should produce in order to maximise profit.