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A risk-neutral monopoly in the food market must set output before it knows the market price. There is a 50 percent chance the firm's demand
A risk-neutral monopoly in the food market must set output before it knows the market price. There is a 50 percent chance the firm's demand curve will be P = 20 Q and a 50 percent chance it will be P = 40 Q. The marginal cost of the firm is MC = Q. What is the expression for the expected marginal revenue function?
a) E(MR) = 20 2Q b) E(MR) = 30 2Q c) E(MR) = 40 2Q d) E(MR) = 50 2Q
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