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use the following scenario: You are the manager of a monopoly firm. Suppose that your firm faces a demand curve described by P =
use the following scenario: You are the manager of a monopoly firm. Suppose that your firm faces a demand curve described by P = 140 - 4Q. Your cost function is C = 10 + 100Q. Your marginal revenue function is MR = 140 - 8Q. Your marginal cost function is MC = 100. What is the profit maximizing output for your firm? What is the profit maximizing price your firm should set? What is the profit your firm would make if it produced at the profit-maximizing price and quantity?
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Managerial Economics
Authors: Paul Keat, Philip K Young, Steve Erfle
7th edition
0133020266, 978-0133020267
