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A monopolist faces a demand curve P = 160 - 20 and initially faces total cost TC = 4Q. (a) Calculate the profit-maximizing monopoly quantity
A monopolist faces a demand curve P = 160 - 20 and initially faces total cost TC = 4Q. (a) Calculate the profit-maximizing monopoly quantity and price, and compute the monopolist's total rev- enue and profits at the optimal price. (b) Suppose that the monopolist's total increases to TC =36Q. Verify that the monopolist's total rev- enue goes down
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