A monopolistic firm faces the following der curve. Q = 9,000 -1O P This monopoly's cost function has been estimated as follows: TC = 480,000 + 40 Q a. What price should this monopoly charge maximize its profit? b. What would be its equilibrium profit? c. What price should it charge if it were to maximize its revenue?
A monopolistic firm faces the following der curve. Q = 9,000 -1O P This monopoly's cost function has been estimated as follows: TC = 480,000 + 40 Q a. What price should this monopoly charge maximize its profit? b. What would be its equilibrium profit? c. What price should it charge if it were to maximize its revenue?
Chapter13: Monopoly And Antitrust
Section: Chapter Questions
Problem 12P
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