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Standard Oil is a monopoly facing an inverse demand function P=80-Q. Standard Oil can purchase as many factories as it wants at a cost of
Standard Oil is a monopoly facing an inverse demand function P=80-Q. Standard Oil can purchase as many factories as it wants at a cost of $25 each. Each factory iindependently produces the good with a cost function ci(qi)=q^2i. How many factories should Standard Oil purchase to maximize profits?
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