The Commonwealth of Pennsylvania is the monopoly retailer of wine in the state. Suppose that Quaker Cabernet has no close substitutes and that the statewide inverse demand function for this wine is p=5-0.001Q. The state purchases the wine on the wholesale market for $2 per bottle, and the state-operated liquor stores incur no other expenses to sell this wine. a. What are the state's profit-maximizing price and quantity? The equilibrium price would be $☐. (round your answer to two decimal places) The equilibrium quantity would be ☐ units. (round your answer to two decimal places)
The Commonwealth of Pennsylvania is the monopoly retailer of wine in the state. Suppose that Quaker Cabernet has no close substitutes and that the statewide inverse demand function for this wine is p=5-0.001Q. The state purchases the wine on the wholesale market for $2 per bottle, and the state-operated liquor stores incur no other expenses to sell this wine. a. What are the state's profit-maximizing price and quantity? The equilibrium price would be $☐. (round your answer to two decimal places) The equilibrium quantity would be ☐ units. (round your answer to two decimal places)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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please give me correct answer with calculation otherwise i give multiple downvote and "Dont use chatGPT"
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