Question: As a profit-maximizing monopolist, you face the demand curve Q = +P+. In the past, you have set the following prices and sold the accompanying

As a profit-maximizing monopolist, you face the demand curve Q = α+βP+ε. In the past, you have set the following prices and sold the accompanying quantities:

Q| 3 3 7 6 10 15 16 13 9 15 9

Suppose that your marginal cost is 10. Based on the least squares regression, compute a 95 percent confidence interval for the expected value of the profit-maximizing output.

Q| 3 3 7 6 10 15 16 13 9 15 9 15 12 18 21 P 18 16 17 12 15 15 4 13 11 6 8 10 7 7 7

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