The demand for detergent in Tanzania is characterized by the following functuon P(Q) = 100 - 10Q. Firm A supplies detergent and has a cost function given by TC(Q) = 10Q²
a) assuming that firm A is a monopolist in Tanzania what is the profit maximizing quantity and price?
b) What is the total profit earned by firm A?
a) The profit maximizing quantity and price for firm A is Q = 9 and P = 91.
b) The total profit earned by firm A is 81.