A monopolist has constant marginal costs of $1 per unit. The demand for her output is 1000/p if p is less than or equal to 50. The demand is 0 if p> 50. What is her profit maximizing level of output? a. 5 b. 10 c. 15 d. 20 e. 25
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First, let's find the monopolist's revenue function. The revenue function is given by the product of price and quantity: R = p*q. Since the demand function is 1000/p for p ≤ 50 and 0 for p > 50, we can rewrite the revenue function as follows: R = p*q = Show more…
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