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GSG, the movie market is monopolistically competitive. In the long run, demand for movies at the Gold Screen theatre is given by the equation: P
GSG, the movie market is monopolistically competitive. In the long run, demand for movies at the Gold Screen theatre is given by the equation:
P = 5.00 - 0.002Q
where Q is the number of paid admissions per month. The average cost function is given by:
AC = 6.00 - 0.004Q + 0.000001Q2
Q.1) To maximize profit, determine the price should the manager of Gold Screen charge. Determine the number of paid admissions per month.
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