You are the manager of a monopoly, and your analysts have estimated your demand and cost functions as P = 300 − 2Q and C(Q) = 1,500 + 2Q2, respectively.

a. What price–quantity combination maximizes your firm’s profits? Instructions: Round your response to the nearest penny (two decimal places).

Price: $ Quantity: units

b. Calculate the maximum profits. Instructions: Round your response to the nearest penny (two decimal places). $

c. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price–quantity combination? multiple choice 1 Inelastic Elastic Unit elastic

d. What price–quantity combination maximizes revenue? Instructions: Round your response to the nearest penny (two decimal places). Price: $ Quantity: units

e. Calculate the maximum revenues. Instructions: Round your response to the nearest penny (two decimal places). $

f. Is demand elastic, inelastic, or unit elastic at the revenue-maximizing price–quantity combination?

multiple choice:

Inelastic

Unit elastic

Elastic