Compare goals of revenue-maximization vs profit-maximization
Microeconomics
A monopolist faces the price equation: P=1,000-0.5Q and total cost: C=50,000 +100Q + .4Q^2. A. Determine the price and output that maximize total revenue, and the level of profit. B. Determine the price and output that maximize profit and the level of profit. C. Compare the goals of revenue-maximization versus profit-maximization, and comment on the appropriate goal of the firm.
