Where Q is qu… Show more The market demand for a monopoly

Where Q is qu… Show more The market demand for a monopoly firm is estimated to be: Q= 100,000 – 500P+2M+5000PR Where Q is quantity demanded, P is the price, M is income, and PR is the price of a related good. The manager has forecasted the values of M and OR will be $50,000 and $20 respectively, in 2014. The average variable cost function is estimated to be: AVC=520-0.03Q+0.000001Q^2 Total fixed cos in 2014 is expected to be $4 million. Please show all work for the following answers a. Determine the profit maximizing choice of output. b. What price should the firm charge? c. What will be the firm’s expected profit? • Show less

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