1. You are the manager of a monopoly, and your analysts have estimated your demand and cost functions as P = 600 - 3Q and C(Q) = 2,000 + 2Q^2, respectively.
a. What price-quantity combination maximizes your firm's profits?
b. Calculate the maximum profits.
c. Calculate the maximum revenues.
2. A firm sells its product in a perfectly competitive market where other firms charge a price of $110 per unit. The firm estimates its total costs as C(Q) = 70 + 14Q + 2Q^2.
a. How much output should the firm produce in the short run?
b. What price should the firm charge in the short run?
c. What are the firm's short-run profits?
