1 a monopolists inverse demand function is p 150 3q the company produces output at two facilities the marginal cost of producing at facility 1 is mc1 6q1 the marginal cost of producing at fa 86386

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SOLVED:The Didlum Corporation is a monopoly with cost function C(q)=q 0.03 q^2 and the demand set for their product is D={(q, p) |q 20 p=500} Work out (i) the inverse demand function; (ii) the profit function; (iii) the optimal value, qm, of q, given that the upper limit on its production is 200. Explain why the optimal value is a maximum.

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