1. Since a firm in monopoly sets its own price, we can write the price as a function of the quantity (the inverse demand function). Write the inverse demand function and interpret the equation you obtain. 2.Using the inverse demand function, write the profit of the firm as a function of q.
1. Since a firm in monopoly sets its own price, we can write the price as a function of the quantity (the inverse demand function). Write the inverse demand function and interpret the equation you obtain. 2.Using the inverse demand function, write the profit of the firm as a function of q.
Chapter28: Antitrust And Regulation
Section: Chapter Questions
Problem 8E
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1. Since a firm in monopoly sets its own price, we can write the price as a function of the quantity (the inverse demand function). Write the inverse demand function and interpret the equation you obtain.
2.Using the inverse demand function, write the profit of the firm as a function of q.
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