A monopoly firm maximizes its profit by producing

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1. A monopoly firm maximizes its profit by producing 500 units output (so Q = 500). At that level of output, its marginal revenue is $30, its average revenue is $40, and its average total cost is $34. At Q = 500, what is the firm's total cost?
2. A monopolist faces market demand given by P = 60 - Q. For this market, MR = 60 - 2Q and MC = Q. What price will the monopolist charge in order to maximize profits? 

Reference no: EM13752223

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