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Please solve this question 2. The inverse demand curve a monopoly faces is p = 1 10 - Q. The rm's cost curve is C(Q)
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2. The inverse demand curve a monopoly faces is p = 1 10 - Q. The rm's cost curve is C(Q) = 10 + 5Q. What is the prot-maximizing solution? The profit-maximizing quantity is |:|. {Round your answer to Mo decimatptaces.) The profit-maximizing price is $|:|. (round your answer to two decimat ptaces.) What is the firm's economic prot? The rm earns a profit of $|:|. {round your answer to two decimal places.) How does your answer change if C(Q) = 100 + SQ? The increase in fixed cost [:3 A. has no effect on the equilibrium price and quantity, but profit will decrease. E, ,3 B. has no effect on the equilibrium quantity, but the equilibrium price increases and prot decreases. E 3 C. has no effect on the equilibrium quantity, but the equilibrium price increases and prot increases. E. .3 D. causes the rm to increase both the price and quantity, and profit increasesStep by Step Solution
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