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Topside Tiles, which produces roofing tiles, is a local monopoly. Its inverse demand function is p = 80 -2Q, and its constant marginal cost is
Topside Tiles, which produces roofing tiles, is a local monopoly. Its inverse demand function is p = 80 -2Q, and its constant marginal cost is 10. The owner has delegated the decision of how much output to produce to the plant manager. The manager's income, Y, is 25% of profit: Y = 0.25(pie). Are the interests of the owner and manager aligned or in conflict? Is there an agency problem in this case? Part 2 The output that maximizes profit is Q enter your response here units
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