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The Commonwealth of Pennsylvania is the monopoly retailer of wine in the state. Suppose that Quaker Cabernet has no close substitutes and that the statewide
The Commonwealth of Pennsylvania is the monopoly retailer of wine in the state. Suppose that Quaker Cabernet has no close substitutes and that the statewide inverse demand function for this wine is p= 6 0.0010. The state purchases the wine on the wholesale market for $2 per bottle, and the stateoperated liquor stores incur no other expenses to sell this wine. a. What are the state's profitmaximizing price and quantity? The equilibrium price would be SSE. {round your answer to two declmal places) The equilibrium quantity would be |:| units. (round your answer to two decimal places)
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