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The monopolist faces a demand curve given by D(p) = 50-2p. Its cost function is c(y)=4y. What is its optimal level of output and price?

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter23: Monopoly

Section23.3: Perfect Competition And Monopoly

Problem 1ST

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The monopolist faces a demand curve given by D(p) = 50-2p. Its cost function is c(y)=4y.
What is its optimal level of output and price?

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