(a. 12-5107862) Consider an advertising monopolist that faces a market demand function P(QA) = 3595 - 0.5Q + A0.5, has no fxed costs, has constant marginal costs of $20 per unit of Q, and a $1 cost per unit of advertising A. The profit function is: x(Q)= (3595 - 0.5Q + Aº5)a- 200-A What is the profe-maximizing quantity Q? OA 10010 Xa. 6435 C. 3575 Oo. 5005 E 7150
(a. 12-5107862) Consider an advertising monopolist that faces a market demand function P(QA) = 3595 - 0.5Q + A0.5, has no fxed costs, has constant marginal costs of $20 per unit of Q, and a $1 cost per unit of advertising A. The profit function is: x(Q)= (3595 - 0.5Q + Aº5)a- 200-A What is the profe-maximizing quantity Q? OA 10010 Xa. 6435 C. 3575 Oo. 5005 E 7150
Chapter1: Making Economics Decisions
Section: Chapter Questions
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From the following problem,
how to get the 7150?
![(Q: 12-5107862] Consider an advertising monopolist that faces a market demand function P(Q,A) = 3595 - 0.5Q + AU.5 has no fixed costs, has constant marginal costs of $20 per unit of Q, and a $1 cost per unit of advertising A.
The profit function is: z(QA) = (3595-0.5Q + A05)a-200-A What is the profit-maximizing quantity Q?
OA 10010
B. 6435
OC. 3575
OD. 5005
*E 7150](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb4425dd8-bb5b-41e7-a933-1115e10b29a9%2Fccdf49ff-da90-4f9f-ae0b-f4c0912b7173%2F1yq54bv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(Q: 12-5107862] Consider an advertising monopolist that faces a market demand function P(Q,A) = 3595 - 0.5Q + AU.5 has no fixed costs, has constant marginal costs of $20 per unit of Q, and a $1 cost per unit of advertising A.
The profit function is: z(QA) = (3595-0.5Q + A05)a-200-A What is the profit-maximizing quantity Q?
OA 10010
B. 6435
OC. 3575
OD. 5005
*E 7150
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