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February 21st, 2014, 02:10 AM   #1
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Monopoly Market (multiple steps)

I am in need of help of the following problem,

In a monopoly market, selling prices and Variable Costs can be entirely determined by the number of products created. Let x be the number of items of a particular product that are manufactured. To establish am assembly line, the manufacturer requires $200,000 in start up costs. Suppose that the cost is (.02x+222)dollars per unit for per unit creating x units and that the selling price is 462-.02x dollars per unit.
a. Find the production levels(s) at which the company breaks even
b. Find the maximum total revenue
c. Find the minimum total cost
d. Identify the production level(s) and market price that will maximize profit. (rounded to nearest unit/cent)

Thank you for any help in advance.
Isaikk is offline  
February 21st, 2014, 12:08 PM   #2
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Re: Monopoly Market (multiple steps)

You need further information for d, like buyer behavior. Otherwise, if it is a must have, charge can be anything the manufacturer wants.
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