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Please refer to the background Information below to answer the following five questions. Your mom is the monopoly supplier of jokes in (humorless) Ho Hum.
Please refer to the background Information below to answer the following five questions. Your mom is the monopoly supplier of jokes in (humorless) Ho Hum. She faces a demand curve and a marginal cost curve given by following equations Demand: Q =86 -0.17P jokes per day Marginal Cost: MO =80 dollars per joke Assume that jokes are perfectly divisible. 60. Your profit-maximizing mom would produce [ Answer60A = 36.20 ] jokes per day, and set a price of [ Answer60B = 292.94 ] dollars per joke. 61. The price elasticity of demand at the profit-maximizing quantity is [ Answer61 = -1.38 ] 62. The markup at the profit-maximizing quantity is [ Answer62 = 266.18 ] percent. 63. The socially efficient quantity is [ Answer63 = 72.40 ] jokes. 64. Compared to the socially efficient quantity, monopoly pricing leads to a deadweight loss of [ Answer64 = 3854.24 ] dollars per day.
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