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Suzanne is the monopoly seller of an illegal product in a particular city. Her marginal cost is $7 per unit and she has no other
Suzanne is the monopoly seller of an illegal product in a particular city. Her marginal cost is $7 per unit and she has no other costs. She faces a demand curve of P = 124-q, and she charges the same price to all her clients. Unfortunately for Suzanne, in the city there is a corrupt government official who has the power to shut Suzanne's operation down. This official, however, is willing to take a bribe and let Suzanne continue to sell. What is the highest bribe that Suzanne is willing to pay? [Hint: she wants to be at least as well off as having to stop operating] [Round your answer to 2 decimal points when necessary]
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