Compute total revenue and total profit

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You own a company in a monopolistically competitive market. Your marginal cost of production is $12 per unit. There are no fixed costs. The demand for your own product is given by the equation P = 48-(1/2)Q.

(a) Plot the demand curve, the marginal revenue curve, and the marginal cost curve.

(b) Compute the profit-maximizing output and price combination.

(c) Compute total revenue and total profit.

(d) In this monopolistically competitive industry, can these profits continue indefinitely?

Reference no: EM131072310

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