Question
Thank you in advance :) Fjllrven is a Swedish company that makes products to prepare customers for the outdoors. One of Fjllrven's products is the
Thank you in advance :)
Fjllrven is a Swedish company that makes products to prepare customers for the outdoors. One of Fjllrven's products is the Knken backpack, which is completely waterproof. The backpack is revolutionary in its design, hence it can be assumed that Fjllrven has a monopoly.Assume demand for their backpack is linear and they sell a quantity that maximises profit.
Which of the following statements are true:
Fjllrven's marginal revenue curve is twice as steep as their demand curve.
The priceFjllrven sells its backpack for would be determined by the demand for the backpack.
The maximum profit could be calculated as marginal revenue minus marginal cost.
Fjllrven is a price maker.
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