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The demand a monopoly faces is p 100-a+A.5 where Q is the quantity, p is the price, and A is the level of advertising. Marginal
The demand a monopoly faces is p 100-a+A.5 where Q is the quantity, p is the price, and A is the level of advertising. Marginal cost is a constant $10 per unit, the cost per unit of advertising is $1, and there are no foxed costs. Solve for the firm's profit-maximizing price, quantity. and level of advertising. Hint: the profit function must be maximized with respect to two choice variabies (O and A) The profit-maximizing quantity isunits. (round your answer to two decimal places) The profit-maximizing level of advertising is units. (round your answer to two decimai places) The profit-maximizing price is (round your answer to two decimai places)
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