Economics - Microeconomics - Market structures - monopoly - Monopoly Profit Maximization

A worked example. 'A drug company has a patent (monopoly). Demand: P = 100 - 2Q. Costs: TC = 20Q + 100.' Step 1: Find TR = P×Q = 100Q - 2Q². Step 2: Find MR = dTR/dQ = 100 - 4Q. Step 3: Find MC = dTC/dQ = 20. Step 4: Set MR = MC: 100 - 4Q = 20, so Q = 20. Step 5: Find P from demand: P = 100 - 2(20)