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A. Determine the maximum profit and the corresponding price and quantity for a monopolist whose demand functions are P =20-.5 q and total costs are
A. Determine the maximum profit and the corresponding price and quantity for a monopolist whose demand functions are P=20-.5q and total costs are C=30+5q.
B. Assume an increase in oil prices increases the variable cost per unit by 3 dollars. What are the implications for the price, output and profit of the monopolist? Is raising the price by 3 optimal?
C. Assume an increase in property taxes of $20. Determine the price, output and profits of the firm.
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