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8) The demand price for a monopolistic rm's product is a function of quantity q and quality 3: P(3, q) = 3(a bq), While the
8) The demand price for a monopolistic rm's product is a function of quantity q and quality 3: P(3, q) = 3(a bq), While the rm's production cost is a function of quality 3 only: C(s,q) = 0.582. a) Find the stationary (i.e., critical) point (8*, q*) of the monopolist's prot maximization problem. b) Use the determinantal test to check Whether the stationary point is the rm's local maximum, global maximum, local minimum, global minimum, or neither
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