(Answered) Suppose a firm is a monopolist in an e-commerce business

Management Studies

Suppose a firm is a monopolist in an e-commerce business. The cost of providing e-service, once the platform has been set up, to every additional customer is zero (MC=0).

a. Suppose the demand for this firm's services is given by P=2,000-Q and fixed costs are equal to $900,000. What is the optimal production rate? What is this firm's profit?

b. How much will this firm produce and what will it receive in profit if the demand is P=120-12Q and fixed costs are equal to $1,000?

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