Business, 16.11.2019 01:31 maddysmall32

Earlier we mentioned the special case of a monopoly where mc = 0. let’s find the firm’s best choice when more goods can be produced at no extra cost. since so much e-commerce is close to this model—where the fixed cost of inventing the product and satisfying government regulators is the only cost that matters—the mc = 0 case will be more important in the future than it was in the past. for each demand curve, calculate the profit-maximizing level of output and price as well as the monopolist's profit.

a. p=200− fixed cost = 1,000.

profit-maximizing output q =

profit-maximizing price p = $

monopolist's profit: $

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Earlier we mentioned the special case of a monopoly where mc = 0. let’s find the firm’s best choice...

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