If this monopolistic firm's marginal cost is constant at $30, its profit maximizing output is: (Hint: Demand is linear (P-a-bQ) implying that the MR curve's slope is twice the demand curve slope; find the demand curve and then the MR curve.) Price $70 $50 $30 $10 10 20 30 40 50 60 70 Quantity 50 units. 40 units. 20 units. Demand 30 units.
If this monopolistic firm's marginal cost is constant at $30, its profit maximizing output is: (Hint: Demand is linear (P-a-bQ) implying that the MR curve's slope is twice the demand curve slope; find the demand curve and then the MR curve.) Price $70 $50 $30 $10 10 20 30 40 50 60 70 Quantity 50 units. 40 units. 20 units. Demand 30 units.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
ChapterP3: Market Structure
Section: Chapter Questions
Problem 2KC
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Question
![If this monopolistic firm's marginal cost is constant at $30, its
profit maximizing output is: (Hint: Demand is linear (P-a-bQ)
implying that the MR curve's slope is twice the demand curve
slope; find the demand curve and then the MR curve.)
Price
$70
$50
$30
$10
10 20 30 40
50 units.
40 units.
20 units.
30 units.
Demand
50 60 70 Quantity](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0ce7b773-5686-4b3d-89a9-b4d619f8a51a%2Fe8c8efea-afd7-40d1-b2ce-851c6e90e880%2Fb7a9ko_processed.png&w=3840&q=75)
Transcribed Image Text:If this monopolistic firm's marginal cost is constant at $30, its
profit maximizing output is: (Hint: Demand is linear (P-a-bQ)
implying that the MR curve's slope is twice the demand curve
slope; find the demand curve and then the MR curve.)
Price
$70
$50
$30
$10
10 20 30 40
50 units.
40 units.
20 units.
30 units.
Demand
50 60 70 Quantity
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