In a given market the inverse demand function is P= 170 - Q per year. The interestrate is r= 0.05 and the cost structure of a firm is given by C(q) = 80 q.%3D%3DAlternatively, the research institute can sell the new technology to the monopolist andthen stay out of the market. If it is safe to assume that no more advances will bemade in the future, then the maximum price that the monopolist is willing to pay forthe innovation and the minimum price that the research institute is willing to receivefor it are respectivelyO 42.000 and 33.600 so the monopolist ends up buying the new technology.42.000 and 52,500 so the monopolist ends up not buying the new technology.O 75,600 and 33,600 so the monopolist ends up buying the new technology.O 67,200 and 52,500 so the monopolist ends up buying the new technology.

Meaning of Monopolistic Competition: The term monopolistic competition refers to the situation…

Answered: In a given market the inverse demand…

In a given market the inverse demand function is P = 170 - Q per year. The interest rate is r= 0.05 and the cost structure of a firm is given by C(q) = 80 q.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter1: Introduction And Goals Of The Firm

Section: Chapter Questions

Problem 2.2CE

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Question

In a given market the inverse demand function is P= 170 - Q per year. The interest
rate is r= 0.05 and the cost structure of a firm is given by C(q) = 80 q.
%3D
%3D
Alternatively, the research institute can sell the new technology to the monopolist and
then stay out of the market. If it is safe to assume that no more advances will be
made in the future, then the maximum price that the monopolist is willing to pay for
the innovation and the minimum price that the research institute is willing to receive
for it are respectively
O 42.000 and 33.600 so the monopolist ends up buying the new technology.
42.000 and 52,500 so the monopolist ends up not buying the new technology.
O 75,600 and 33,600 so the monopolist ends up buying the new technology.
O 67,200 and 52,500 so the monopolist ends up buying the new technology.

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