(adsbygoogle = window.adsbygoogle || []).push({}); 1. The problem statement, all variables and given/known data

For a monopolist's product, the demand equation is:

p = 42 - 4q

and the average-cost function is

c = 2 + (80/q)

Find the profit-maximizing price.

2. Relevant equations

When i started to solve the problem, i deduced from what i needed to find that I needed to make up a function, plugging in the above functions into profit = (price-cost)quantity.

To what extent I'm correct I'm not sure.

3. The attempt at a solution

I tried plugging it in like this: profit = ((42-4q-2-(80/q)) all that multiplied by q. I dont seem to know if i multiply that whole equation just by q, or by finding a formula for q from those other functions they already gave me. I tried it and it gave me q= 80/(c-2) but then, do i have to substitute c in that formula.

I really dont know where to go from here. would appreciate any help given please.

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# Homework Help: Applied Maxima and Minima

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