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[See Solution] Harry Smith is the owner of a metals-producing firm that is an unregulated monopoly. After considerable experimentation and research, he

Question: Harry Smith is the owner of a metals-producing firm that is an unregulated monopoly. After considerable experimentation and research, he finds that its marginal cost curve can be approximated by a straight line, MC = 60 + 2Q, where MC is marginal cost (in dollars), and Q is output. The demand curve for the product is P = 100 – Q, where P is the product price (in dollars), and Q is output.

  1. If he wants to maximize profit, what output should he choose?
  2. What price should he charge?

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