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Suppose a firm's demand function is given as =1004, where is the total market quantity and is the market price. The fixed costs of the
Suppose a firm's demand function is given as =1004, where is the total market quantity and is the market price. The fixed costs of the firm are 15 and their marginal cost is 10. (Note: The firm's total costs include the fixed cost along with marginal costs)
a) Determine the equilibrium price , quantity , and profit of this monopolist
b) What profit-maximizing condition must a monopolist follow?
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