A find the optimal monopoly output b assume an incumbent


Production of a certain good is discrete and has a cost structure characterized as follows:

q 100 150 200 300 400 500
C(q)/q 300 250 220 200 190 188

Assume inverse demand is p(Q) = 300 - 0.2Q

a. Find the optimal monopoly output

b. Assume an incumbent monoploy operates according to (a). Is it profitable for a second firm to enter?

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Business Management: A find the optimal monopoly output b assume an incumbent
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