<Dd> C (Q) = Total (Economic) Cost of producing Q . </Dd> <Dd> π (\ displaystyle \ pi) = Economic Profit </Dd> <P> This is done by setting the derivative of π (\ displaystyle \ pi) with respect to Q equal to 0, Profit of a firm is given by total revenue (price times quantity sold) minus total cost: </P> <Dl> <Dd> <Dl> <Dd> P ′ (Q) Q + P − C ′ (Q) = 0 (\ displaystyle P' (Q) Q + P-C' (Q) = 0) </Dd> <Dd> where </Dd> </Dl> </Dd> <Dd> Q = quantity sold, </Dd> <Dd> P' (Q) = the partial derivative of the inverse demand function, and thereby the Price at which Q can be sold given the existing Demand </Dd> <Dd> C' (Q) = Marginal Cost, or the partial derivative of the Total (Economic) Cost of producing Q . </Dd> </Dl>

Mcgraw hill is a monopolist in the production of your text book because