You are the manager of a monopoly, and your analysts have estimated your demand and cost functions as P = 200 − 2Q and C(Q) = 1,000 + 3Q2, respectively.


a. What price–quantity combination maximizes your firm’s profits?




Instructions: Round your response to the nearest penny (two decimal places).




Price: $


Quantity:

units



b. Calculate the maximum profits.




Instructions: Round your response to the nearest penny (two decimal places).




$






c. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price–quantity combination?




multiple choice 1

Elastic

Unit elastic

Inelastic






d. What price–quantity combination maximizes revenue?




Instructions: Round your response to the nearest penny (two decim