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Profit Maximization with Monopolistically Competitive Firms:
Say a firm produces a particular good-or-service Qi.
Additionally, that firm can be described as a price-maker-given its monopolistic status.
Suppose the market demand curve for this good-or-service the firm produces can be described through the following mathematic expression:
Qi(Pi) = 156 - 8Pi.
And in addition, the firm's short-run total cost (STC) function can be mathematically described through the following function:
STC (Qi) = (1/6) Qi3 - 3Qi2 + 30Qi + 60.
Given this information-derive the profit maximizing level of output (Qi) the firm should produce. Show all work.
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