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Suppose a monopolist producing Q units of output faces the demand curve P=100-2Q . Its total cost when producing Q units of output is TC(Q)=
Suppose a monopolist producing Q units of output faces the demand curve P=100-2Q. Its total cost when producing Q units of output is TC(Q)= F+4Q+Q2, where F is a fixed cost.
1) For what values of F can a profit-maximizing firm charging a uniform price earn at least zero economic profit?
2) For what values of F can a profit-maximizing firm engaging in perfect first-degree price discrimination earn at least zero economic profit?
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