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.

A. If he wants to maximize profit, what output should he choose?

B. What price should he charge?