Assume that a monopolist faces a demand curve for its product given by: p=120−1q Further assume that the firm's cost function is: TC=580+11q What price should the monopolist choose to maximize profits?
Added by J C.
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Step 1: Find the revenue function by multiplying the price and quantity: Revenue = Price x Quantity Revenue = (120 - q)q Revenue = 120q - q^2 Show more…
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