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5) Suppose a monopoly has demand given by p = a -b q (technically, this is an inverse demand curve because price is on the
5) Suppose a monopoly has demand given by p = a -b q (technically, this is an "inverse demand" curve because price is on the left hand side). Derive the elasticity of demand as a lnction of Q or p. Use the elasticity to calculate marginal revenue. If marginal cost equals 0, what is the prot-maximizing output and price? How do they vary with a, b, and c? Explain why that makes sense
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Social Statistics For A Diverse Society
Authors: Chava Frankfort Nachmias, Anna Leon Guerrero
7th Edition
9781483333540
