Answer to Question #44378 in Microeconomics for Job

Question

A monopoly firm is faced with the following demand function P = 26 – 0.5Q. The Marginal Cost function for the firm is given by 6 + 6Q and the total fixed cost is 4.
Determine
a) The profit maximizing output.
b) The level of supernormal profit if any.
c) The output level at the break-even point.
A firm operating in a perfectly competitive market has to sell all its output at the price of $.10 per unit. Its marginal cost function is given by Q + 4 and the total fixed cost is 1.
Determine
a) The profit maximizing output level.
b) The level of supernormal profit if any.