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Assume that a firm in monopolistic competition facing the following demand and cost function: P=100-30+4A 1/2 and TC=4Q 2 +10Q+A where p=price , Q=quantity and
Assume that a firm in monopolistic competition facing the following demand and cost function:
P=100-30+4A1/2 and TC=4Q2+10Q+A where p=price , Q=quantity and A=advertising
a) Find the equilibrium of quantity and advertisement price.
b) Compute the degree of monopoly power
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