economics

If q(P) = 100/P and c(q) = q2 , what is the optimal level of output of the monopolist?

Answers

The optimal level of output for the monopolist is P=100, such that q(P)=100/100=1 and c(q)=12. In this case, the monopolist will maximize their profit by charging a price of 100 and producing one unit of quantity. This is because at this output level, the monopolist will get the highest price for their good and will have the lowest cost (which is 0). This maximizes the profit the monopolist can make from this good.

Answered by stricklandroger

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