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A monopolist faces a consumer demand curve of = 4 0 ; with production costs of ( ) = 1 5 0 + 1 4

A monopolist faces a consumer demand curve of =40; with production costs of ()=
150+1
42. The monopolist is approached by an advertising company that claims it can raise the price
consumers are willing to pay by $1 for each unit of advertising ,(=40+). The cost of
advertising to the monopolist would be ()=2
.

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