Suppose ABC corporation is a monopoly. The demand and cost functions of ABC are:
P = 432 - 6Q
C(Q) = 2000 + 3Q^2
You are required to:
a. Find the price and quantity that maximize ABC profits.
b. How much ABC is total profit?
c. At max price-quantity, is demand elastic, inelastic or unit elastic.
d. At what price-quantity revenue is maximized.
e. How much in revenues ABC is earning.
f. Is demand elastic, inelastic or unit elastic at the revenue maximizing price-quantity?