Question: Michelle’s monopoly has exclusive rights to sell t-shirts in united states demand is Q=10000/p2. The firms short run cost is srtc =2000 +5Q and long run is lrtc=6Q.

a. what price should be charged to maximize profit in short run? What quantity does it sell and how much profit does it make? Would it be better to shut down in short run?

b. what price should be charged to maximize profit in long run? What quantity does it sell and how much profit does it make? Would it be better to shut down in long run?

c. Will they have a lower marginal cost in the short run or long run?