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Consider a monopolist whose total cost function is TC = 20 + 10Q + 0.3Q2 and whose marginal cost function is MC = 10 + 0.6Q. The demand function for the firms good is P = 160 - 0.5Q. The firm optimizes by producing the level of output that maximizes profit or minimizes loss. If the firm uses a uniform pricing strategy, then rounded to the nearest unit of output and to the nearest dollar the firm will:
A. produce 94 units of output, charge a price of $113, and earn a total profit of $5894
B. produce 94 units of output, charge a price of $113, and earn a total profit of $7011
C. produce 110 units of output, charge a price of $98, and earn a total profit of $6030
D. produce 110 units of output, charge a price of $98, and earn a total profit of $8237
A recording company obtains the following information about the demand and production costs of its new.
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