I'm given a demand function ( $p = 60-.002q$), Marginal Cost (\$10) and Fixed Costs (\$300,000) for a monopoly.
I've figured the profit maximizing output and price:
Marginal revenue function $MR = 60 -.004q$.
$10 = 60-.004q$ # To find monopoly output.
$q = 12500 \implies$ Price of monopolist is $35$ # $p = 60-.002(12500)$.
Now, I usually figure out the economic profit by taking the area of the rectangle formed by the bounds of the demand function (at monopolist output) down and stopping where it meets the AC function, and then across to the y-intercept of the graph; but they didn't give me an average cost function.
How can I figure out the economic profit? Please help and thanks for your time.
P.S. Is there a way of finding what Average Cost is at output(12500) with the given information?