You’ve been hired as a consultant by a monopoly. You discover that the demand curve facing the monopoly is given by P = 80-Q and MC = 3Q. The firm is currently charging a price of $60. Using this information and a carefully drawn and labeled diagram and assuming that the firm should remain open, explain what the firm should

Economics:
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Author:BOYES, William
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Chapter23: Profit Maximization
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12. You’ve been hired as a consultant by a monopoly. You discover that the demand
curve facing the monopoly is given by P = 80-Q and MC = 3Q. The firm is currently
charging a price of $60. Using this information and a carefully drawn and labeled
diagram and assuming that the firm should remain open, explain what the firm should do
and why.

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