Monopolists profit-maximizing quantity-price and profit
Question: A monopolist has a constant marginal and average cost of $10 and faces a demand curve of QD = 1000-10P. Marginal revenue is given by MR = 100 -1/5Q.
Calculate the monopolist's profit-maximizing quantity, price and profit.
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A monopolist has a constant marginal and average cost of $10 and faces a demand curve of QD = 1000-10P. Marginal revenue is given by MR = 100 -1/5Q. Calculate the monopolist's profit-maximizing quantity, price and profit.
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