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A Monopolist Has a Demand Function That Is Described by Qd

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Essay

A monopolist has a demand function that is described by Qd = 100 - P. The monopolist's cost function is simply described by TC = 10 + 2Q. Therefore MC is constant at 2. The marginal revenue function for the monopolist is 100 - 2P. What is the profit-maximizing price and quantity for the monopolist? What is the profit that the monopolist earns at this output level?


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