A monopoly firm's total cost is: TC(Q) = Q + 15Q + 225. if the industry's demand curve is described by P= 195 - 4Q. How much profit will this firm make if it is applying the profit maximizing rule? (Hint: MC = 20 + 15)

A monopoly firm's total cost is: TC(Q) = Q + 15Q + 225. if the industry's demand curve is described by P= 195 - 4Q. How much profit will this firm make if it is applying the profit maximizing rule? (Hint: MC = 20 + 15)

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Monopoly

Section: Chapter Questions

Problem 7PA

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Question

A monopoly firm's total cost is: TC(Q) = Q° + 15Q + 225. if the industry's demand curve is
described by P= 195 - 4Q. How much profit will this firm make if it is applying the profit
maximizing rule?
(Hint: MC = 20 + 15)
O a$ 2025
O b.$ 1575
Oc.$ 279
O d. $ 3775
O e.$ 506

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