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Suppose that a monopolistic firm (say, Melbourne Zoo) is run by the city government of Melbourne. Using appropriate diagrams to answer: (a) If the city
Suppose that a monopolistic firm (say, Melbourne Zoo) is run by the city government of Melbourne.
Using appropriate diagrams to answer:
(a) If the city government's objective is to maximize profits, what would be the ticket price set for this monopolistic firm?
(b) If the city government's objective is to maximize revenue, what would be the ticket price set for this monopolistic firm?
(c) If the city government's objective is to maximize welfare, what would be the ticket price set for this monopolistic firm?
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