A firm is a monopoly in the output market and a monopsony in the input market. Its

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A firm is a monopoly in the output market and a monopsony in the input market. Its only input is the finished good, which it buys from a competitive market with an upward-sloping supply curve. The firm sells the same good to competitive buyers in the output market. Determine its profit-maximizing output. What price does it charge in the output market? What price does it pay to its suppliers?

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Microeconomics

ISBN: 978-0134519531

8th edition

Authors: Jeffrey M. Perloff

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