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The demand a monopoly faces is p=100-Q+A0'5, where Q is the quantity, p is the price, and A is the level of advertising. Marginal cost
The demand a monopoly faces is p=100-Q+A0'5, 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 xed costs. Solve for the rm's profit-maximizing price, quantity, and level of advertising. Hint: the prot function must be maximized with respect to two choice variables (Q and A ). The prot-maximizing quantity is 50 units. (round your answer to two decimal places) The prot-maximizing level of advertising is ID units. (round your answer to two decimal places) The prot-maximizing price is $D. {round your answer to two decimal places)
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