題組內容

1. Consider a monopolist facing the following market demand function: $$Q = 120 - 2P$$
where Q denotes quantity demanded and P denotes price. The firm's total cost function is given by: $$TC = 20Q + 100$$ Answer the following questions:

(b) Determine the profit-maximizing output level \( (Q^{*}) \) and price \( (P^{*}) \). Clearly show all intermediate steps. \( (10\%) \)