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November 12th, 2013, 10:00 AM  #1 
Newbie Joined: Oct 2013 Posts: 25 Thanks: 0  Monopoly profits
Hey guys, Can someone help me to compute the monopoly profits of the following situation.  2 products  2 demand functions given by; * P(1)= 60  Q(1)  0.5Q(2) * P(2)= 60  Q(2)  0.5Q(2)  Cost are 0 Is it correct that I should use: MC=MR MC=0 MR= P(1) * Q(1) + P(2) * Q(2) ?? FOC ?? Thanks for helping me out. Last edited by skipjack; April 24th, 2014 at 04:44 PM. 
April 25th, 2014, 05:17 AM  #2 
Global Moderator Joined: Dec 2006 Posts: 20,613 Thanks: 2071 
Is the first equation (with a term involving Q(2)) given correctly? I don't understand why you asked about "MC = MR"; was that a typing error? 
April 25th, 2014, 06:16 AM  #3 
Global Moderator Joined: Nov 2006 From: UTC 5 Posts: 16,046 Thanks: 938 Math Focus: Number theory, computational mathematics, combinatorics, FOM, symbolic logic, TCS, algorithms  

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