Arisk neutral monopoly must set output before it knows for sure the market price.
there is a 50% chance the firm’s demand curve will be p=20-q and there is a 50% chance it will be p=40-q.
the marginal cost of the firm is mc=q.

the expected profit-maximizing quantity is: a. 5

b. 10

c. 15

d. 20

B. 10

Explanation:

Please find the attached document with the calculation.

the answer is: c.that person might be arrested and deported

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