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12 Suppose that a monopolist faces an inverse demand curve.pdf

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A monopolist faces an inverse demand curve of p(y)=1504y and a cost function of c(y)=10y+3y2. To find the monopolistic price, the firm sets marginal revenue equal to marginal cost and solves for price. The monopolistic price for this firm is 120.

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12. Suppose that a monopolist faces an inverse demand curve, p(y)=1504y, and a cost function, c (y)=10y+3y2. Then, the monopolistic price is a. 100 b. 110 c. 120 d. 140 e. None of the above

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12 Suppose that a monopolist faces an inverse demand curve.pdf

  • 1. 12. Suppose that a monopolist faces an inverse demand curve, p(y)=1504y, and a cost function, c (y)=10y+3y2. Then, the monopolistic price is a. 100 b. 110 c. 120 d. 140 e. None of the above