The demand function for the products of the monopolist firm P = 200-Q.

The demand function for the products of the monopolist firm P = 200-Q. Total costs of the firm TC = 100 + 3Q. At what P and Q will the firm get the most profit?

The condition for maximizing the profit of the monopolist firm: MR = MC.

Marginal revenue (MR) is found from the demand function for the product:

MR = 200 – 2Q.

MC = (TC) ‘= 3.

MR = MC: 200 – 2Q = 3;

2Q = 197;

Q = 98.5;

P = 200 – 98.5 = 101.5.

Profit = P * Q – TC = 98.5 * 101.5 – (100 + 3 * 98.5) = 9997.75 – 395.5 = 9602.25.