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The inverse demand curve a monopoly faces is p = 130 Q. The firm's cost curve is C(Q) = 20 + 50. What is the
The inverse demand curve a monopoly faces is p = 130 Q. The firm's cost curve is C(Q) = 20 + 50. What is the prot-maximizing solution? The profit-maximizing quantity is D. (Round your answer to two decimal places.) The profit-maximizing price is $D. (round your answer to two decimal places.) What is the firm's economic profit? The firm earns a profit of $D. (round your answer to two decimal places.) How does your answer change if C(Q) = 150 + 5Q? The increase in fixed cost Q A. causes the firm to increase both the price and quantity, and profit increases. [1 B. has no effect on the equilibrium quantity, but the equilibrium price increases and profit increases. a] C. has no effect on the equilibrium quantity, but the equilibrium price increases and profit decreases. Q D. has no effect on the equilibrium price and quantity, but prot will decrease
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