Total revenue (TR) and total cost (TC) functions of a simple monopolist are assumed to be TR = and TC = respectively. At what level of output q, the total profit of the monopolist will be maximum?
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1 mark, −0.33MicroeconomicsMonopoly and price discriminationMonopoly equilibrium and marginal revenueModerateabout 2 min
UoH 2020 Question 86: Monopoly and price discrimination
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Total revenue (TR) and total cost (TC) functions of a simple monopolist are assumed to be TR = 100q - 3q² and TC = 4q² + 10q respectively. At what level of output q, the total profit of the monopolist will be maximum? (A) 6.4 (B) 289 (C) 14 (D) 100
Also written as: Total revenue (TR) and total cost (TC) functions of a simple monopolist are assumed to be TR = 100q - 3q^2 and TC = 4q^2 + 10q respectively. At what level of output q, the total profit of the monopolist will be maximum?
Monopoly and price discrimination has come up 128 times in 7 exams since 2004.
What this question tests
This question is on Monopoly equilibrium and marginal revenue, part of Monopoly and price discrimination in Microeconomics.
How a monopolist sets price and output where marginal revenue equals marginal cost.
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