Given the following information for a monopoly firm:Demand: P = 74 – 2(Q) Marginal revenue: MR = 74 – 4(Q)Marginal cost: MC = 2(Q) + 8Average total cost at equilibrium is 14
1. At what output (Q) will this firm maximize profit?
2. At what price (P) will this firm maximize profit ?
3. What is the total revenue (TR) earned at this output level ?
4. What is the total cost (TC) accrued at this output ?
5. What profit is earned ?
Assume this firm is to be regulated. Answer the following questions:
6. What is the social optimal quantity
7. What is the social optimal price
