Acme is a monopolist for a good with inverse demand = 3060 6, where is the price in dollars and is the amount sold. Acmes variable costs are () = 32. With these functions, the marginal revenue is () = 3060 12 and marginal cost is () = 6. a) If Acme has no fixed costs, what is its profit maximizing price? b) If Acme has non-sunk fixed costs of $300,000, is it worth operating or should they shut down?.

1. Acme is a monopolist for a good with inverse demand = 3060 6, where is the price in
dollars and is the amount sold. Acmes variable costs are () = 32. With these
functions, the marginal revenue is () = 3060 12 and marginal cost is () = 6.
a) If Acme has no fixed costs, what is its profit maximizing price?
b) If Acme has non-sunk fixed costs of $300,000, is it worth operating or should they shut
down?