Question
Please write text form In a given market the inverse demand function is P = 170 - Q per year. The interest rate is r
Please write text form
In a given market the inverse demand function is P = 170 - Q per year. The interest rate is r = 0.05 and the cost structure of a firm is given by C(q) = 80 q.
Alternatively, the research institute can sell the new technology to the monopolist and then stay out of the market. If it is safe to assume that no more advances will be made in the future, then the maximum price that the monopolist is willing to pay for the innovation and the minimum price that the research institute is willing to receive for it are respectively:
A. 67,200 and 52,500 so the monopolist ends up buying the new technology.
B. 75,600 and 33,600 so the monopolist ends up buying the new technology.
C. 42,000 and 33,600 so the monopolist ends up buying the new technology.
D. 42,000 and 52,500 so the monopolist ends up not buying the new technology.
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