Cost function of a monopolist is given by C=F +2Q where F stands for fixed cost. The monopolist will earn profit=0 if it charges price of $4. If the market demand is given by Q=20-p, what is the value of the fixed cost F?

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A:

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Q: profit maximizing price (P) for this monopoly

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Q: Assume the ATC equals four dollars this monopolist will earn how much profit

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A: We are going to use concepts such as additivity and sub-additivity to answer this question.

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A: * ANSWER :-

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